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IBM Agrees to Pay $17 Million in DOJ DEI Settlement

IBM agreed to pay $17 million on Friday to resolve allegations of illegal DEI practices, though the New York-based technology firm resolved the matter without admitting liability.
The DOJ utilized The False Claims Act, a Civil War-era statute, to target diversity initiatives as The Trump administration continued its crackdown on DEI practices in federal contracting.
Federal investigators alleged IBM "knowingly" made "false claims" about hiring while developing "race and sex demographic goals for business units," though IBM denied maintaining discriminatory DEI practices.
Acting Attorney General Todd Blanche announced the settlement through the Civil Rights Fraud Initiative, stating "Racial discrimination is illegal" and contractors cannot "evade the law" by repackaging exclusion as DEI.
An IBM spokesperson told CNN the company's workforce strategy is driven by "having the right people with the right skills," while the settlement remains neither an admission nor a concession by the United States.

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