IBM reached a settlement with the federal government on Friday, agreeing to pay roughly $17 million to resolve allegations of illegal diversity, equity and inclusion practices.
Acting Attorney General Todd Blanche announced the settlement agreement. The DOJ had alleged that the technology firm knowingly made false claims about its hiring and employment practices in its federal contracts. IBM allegedly identified diverse candidates for hiring or promotions, while developing race and sex demographic goals.
An IBM spokesperson stated the company is pleased to have resolved the matter, emphasizing that its workforce strategy is driven by having the right people with the right skills. IBM denied that it had discriminatory and illegal DEI practices. The settlement emphasized that the agreement was neither an admission of liability by IBM nor a concession by the United States that its claims are not well founded.
The Trump administration last year cracked down on DEI practices in public and private sectors, including in federal hiring and contracting. Four days into President Donald Trump's second term, federal agencies were told to terminate all DEI offices and positions.
The DOJ in May 2025 began using the False Claims Act to target diversity initiatives and alleged that IBM, as a contractor, violated the act by maintaining practices that the United States contends were discriminatory employment practices. The Department launched the Civil Rights Fraud Initiative to root out...
IBM reached a settlement with the federal government on Friday, agreeing to pay roughly $17 million to resolve allegations of illegal diversity, equity and inclusion practices. Acting Attorney Gen...