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IBM to Pay $17 Million to Settle US Government Probe over DEI

Acting Attorney General Todd Blanche said the deal resolves allegations that IBM’s federal-contract hiring practices hid discriminatory goals.

  • Yesterday, IBM agreed to pay $17 million to resolve allegations of illegal diversity, equity and inclusion practices, though the New York-based technology firm resolved the matter without admitting liability.
  • The DOJ utilized The False Claims Act, which dates back to the Civil War, to target diversity initiatives, building on The Trump administration's previous crackdown on DEI practices.
  • Allegations include that IBM "knowingly" made "false claims" about hiring practices while developing race and sex demographic goals, though IBM denied maintaining discriminatory or illegal DEI practices.
  • Acting Attorney General Todd Blanche announced the settlement, citing the Civil Rights Fraud Initiative. "Racial discrimination is illegal," Blanche said, adding that contractors cannot "evade the law."
  • An IBMspokesperson told CNN that the company's workforce strategy focuses on having the "right people with the right skills," and the settlement is not a concession by the United States that claims are well founded.
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IBM to pay $17 million in anti-DEI settlement

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 (DEI) practices.

·Atlanta, United States
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New York, Apr 10 (EFE).- IBM technology will pay 17 million to the Donald Trump government to resolve accusations that it committed “discrimination” by applying policies of diversity, equity and inclusion (DEI), something that the company denies, according to the Department of Justice. This is the first resolution of this kind resulting from the Government applying a novel interpretation of the False Claims Act, dedicated to prosecuting fraud in…

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Reuters broke the news in United Kingdom on Friday, April 10, 2026.
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