Diversity, equity, and inclusion ("DEI") initiatives in corporate America are facing an onslaught of criticism, especially after the Supreme Court's decision last year in Students for Fair Admissions v. Harvard. That ruling didn't address companies' DEI programs, but in striking down affirmative action in higher education, it has heightened legal scrutiny of diversity-related programs in employment. And a clear lesson is emerging for employers: Forgetting about the "E" in DEI may put you on the wrong end of a major verdict...

David Duvall — a white man — worked for Novant Health for five years as its Senior Vice President of Marketing and Communications. He reported to a Black man. The evidence at trial showed that Duvall had performed well. But he was still fired in July 2018, and he was permanently replaced by a Black woman. Duvall sued, alleging that he was a victim of discrimination because of his status as a white man...

The evidence about Novant Health's DEI program and the actions of Duvall's superior convinced the jury that his termination was racially motivated. While there was one bright spot for Novant Health — the court reversed the jury's award of punitive damages — that will be small consolation, because Duvall will still recover more than $3 million in front and back pay.