"IBM entered into a $17 million settlement agreement with the U.S. DOJ over allegations that it engaged in illegal DEI practices by considering race, color, national origin, or sex in its hiring and promotions."
"The DOJ alleged that IBM used funds from its government contract for DEI programs and then sought reimbursement, marking a significant enforcement action under the Civil Rights Fraud Initiative."
"IBM denied any wrongdoing, emphasizing that the settlement is not an admission of liability nor a concession that the DOJ's claims were without merit."
"The settlement represents the first resolution secured by the government under the initiative aimed at penalizing recipients of federal funds who knowingly violate civil rights laws."
IBM reached a $17 million settlement with the U.S. DOJ regarding allegations of illegal DEI practices in hiring and promotions based on race, color, national origin, or sex. The DOJ claimed IBM misused government contract funds for DEI programs. IBM denied wrongdoing, stating the settlement does not imply liability. The settlement follows a directive from the former attorney general to investigate illegal DEI programs in companies receiving federal funds. This resolution is the first under the DOJ's Civil Rights Fraud Initiative aimed at enforcing civil rights laws.
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