International Business Machines Corporation (IBM) has agreed to pay $17,077,043 to resolve allegations by the U.S. Department of Justice (DOJ) that it violated the False Claims Act by failing to comply with anti-discrimination requirements tied to federal contracts.
Announced on 10 April 2026, the settlement marks the first resolution secured under the DOJ’s Civil Rights Fraud Initiative.
The case signals heightened scrutiny of employment practices among government contractors and underscores the legal and compliance risks associated with diversity, equity, and inclusion (DEI) programmes linked to federal funding.
According to the U.S. Department of Justice (DOJ), International Business Machines Corporation (IBM) allegedly failed to comply with anti-discrimination obligations required under its federal contracts, giving rise to liability under the False Claims Act.
Federal contractors must certify that they adhere to laws prohibiting discrimination based on race, colour, national origin, or sex as a condition of receiving government funding.
The United States contended that IBM knowingly maintained employment practices that did not meet these requirements while continuing to obtain federal funds.
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