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IBM Agrees to Pay $17 Million in DOJ DEI Settlement
The agreement resolves allegations that IBM made false claims about hiring practices in federal contracts, with the Justice Department saying contractors cannot disguise discrimination as DEI.
- 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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IBM reached an agreement with the federal government on Friday and agreed to pay approximately US$17 million to settle allegations of illegal diversity, equity and inclusion (DEI) practices.
Tech giant reaches multimillion-dollar deal after federal scrutiny of workplace practices
WASHINGTON, D.C. — International Business Machines Corp. (IBM) has agreed to pay more than $17 million to settle accusations that it engaged in discriminatory employment practices tied with diversity initiatives while working under federal contracts, according to the U.S. Department of Justice.
·Cleveland, United States
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Total News Sources51
Leaning Left3Leaning Right9Center31Last UpdatedBias Distribution72% Center
Bias Distribution
- 72% of the sources are Center
72% Center
C 72%
R 21%
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