DEI Consultancy Diversity Lab Dissolves Following FTC Antitrust Investigation into Mansfield Certification Programme

Summary. Diversity Lab LLC, a California for-profit diversity, equity, and inclusion consultancy, has permanently ceased operations following a formal investigation via the United States Federal Trade Commission (FTC). It had formally informed the FTC that it had filed its dissolvement paperwork as a business entity with the California Secretary of State on 5 June 2026.

Background. The Mansfield Certification programme, founded in 2016, grew to a scope of 360 law firms. Consenting and participating firms agreed to consider candidate pools that comprised of 30% of individuals who set a particular demographic characteristics, including but not limited to, race, gender, and other protected characteristics for employment decisions. A participating segment of these firms, who were designated "Mansfield Certification Plus" members had implemented these 30% thresholds in their employment decisions. Collectively, they had employed tens of thousands of attorneys subject to the requirements laid by the programme. In January 2026, FTC Chairman Andrew N. Ferguson had issued warning letters to 42 of these participating law firms. 

Development. Earlier in the 2026 year, the FTC opened an inquiry regarding if Mansfield agreements were collusive in violation of Section 1 of the Sherman Act, which prohibits contracts, combinations, and conspiracies in restraint of trade, and Section 5 of the FTC Act, which prohibits unfair methods of competition. The investigation focused on statements publicly visible regarding the Mansfield Certification awards being on the basis of law firms' adherence to DEI hiring standards, including quota for certain demographics. As a result, the FTC released a press release quoted Chairman Ferguson that characterised the conduct as to 'rigging the labour markets.' Diversity Lab's decision to dissolve followed suite on the FTC's formal inquiry. It did not announce settlement, consent order, or finding of liability.

Status. Diversity Lab has filled dissolution paperwork with the California Secretary of State. The FTC press release has no further specification on any pipeline of procedural steps, nor any indication of any sort of enforcement will be held against the participating law firms either ongoing or anticipated.