The Justice Department sued Cloudera on Tuesday, accusing the private-equity-owned software company of discriminating against American workers in favor of applicants holding temporary visas. The Civil Rights Division filed the lawsuit in federal court, alleging violations of the Immigration and Nationality Act.

Cloudera, headquartered in Santa Clara, Calif., provides data management and analytics software. The company is backed by KKR and private-equity firm Clayton Dubilier & Rice, which acquired the software company in a 2020 take-private transaction. This lawsuit adds to growing federal scrutiny of hiring practices at private-equity-backed technology firms.

The case reflects broader enforcement priorities targeting companies that allegedly prioritize foreign workers over U.S. citizens. The DOJ has signaled an aggressive stance on employer discrimination involving the H-1B visa program. Cloudera now faces potential significant legal liability if the allegations are proven.