The federal government is suing a data intelligence startup co-founded by entrepreneur Peter Thiel for racial discrimination.
The U.S. Department of Labor filed filed a lawsuit Monday against Palantir Technologies, charging Mr. Thiel’s company of actively denying jobs to Asian applicants.
“[Asians] were routinely eliminated in the resume screen and telephone interview phases despite being as qualified as white applicants,” the lawsuit claims. The Obama administration added that roughly 75 percent of 130 candidates were Asian, but only 4 were hired compared to 17 non-Asians.
The announcement is likely to fuel charges of political retribution, as it comes just two months after the billionaire spoke on behalf of Republican presidential nominee Donald Trump at the Republican National Convention in Cleveland.
Patricia Shiu, director of the Office of Federal Contract Compliance Programs, also issued a statement on the lawsuit, which prosecutors say was initiated after a compliance review required for obtaining contracts with the U.S. government, CNN reported.
“Federal contractors have an obligation to ensure that their hiring practices and policies are free of all forms of discrimination,” Ms. Shiu said. “Our nation’s taxpayers deserve to know that companies employed with public funds are providing equal opportunity for job seekers.”
A Palantir spokesman told the network that the company is “disappointed” in the government’s decision and “firmly” denies its allegations.
Mr.Thiel made over $1 billion as the first outside investor in Facebook. He also founded PayPal in 1998, before selling it to eBay for $1.5 billion in 2002.
• Douglas Ernst can be reached at dernst@washingtontimes.com.
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