• The resolution demonstrates the government’s commitment to using the FCA against federal contractors engaged in employment practices that DOJ views as discriminatory.
• The settlement — which appears to result from a government-initiated investigation rather than a whistleblower case — resolves allegations of race and sex discrimination at IBM, including setting workforce representation goals and considering protected characteristics in employment decisions to reach those goals, tying incentive compensation to achievement of DEI goals and initiatives, using diverse interview slates and diverse employment sourcing, and restricting access to employment and educational programming on the basis of race and sex.
• DOJ’s claims appear to be based on an alleged violation of Title VII of the Civil Rights Act and FAR provisions incorporated into IBM’s federal contracts in place prior to 2025 — not a new certification directed by the administration’s recent executive orders.
• IBM received settlement credit for cooperating with DOJ’s investigation, including making early factual disclosures, assisting in the calculation of damages and penalties, and voluntarily terminating or modifying the programs and practices at issue.

On April 10, 2026, Acting Attorney General Todd Blanche announced that International Business Machines Corporation (IBM) agreed to pay $17,077,043 to resolve allegations that it violated the False Claims Act (FCA) by failing to comply with anti-discrimination...

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