IBM settles DOJ lawsuit over DEI programs for $17 million

IBM has entered a $17 million settlement agreement with the U.S. Department of Justice over allegations that it engaged in "illegal DEI practices" in its hiring and promotion decisions. The DOJ alleged that IBM took into account "race, color, national origin, or sex" when making employment decisions and used funds from government contracts for DEI programs before seeking reimbursement. IBM denied any wrongdoing. The company said the settlement is not an admission of liability or a concession that the claims were without merit. "IBM is pleased to have resolved this matter. Our workforce strategy is driven by a single principle: having the right people with the right skills that our clients depend on," an IBM spokesperson told TechCrunch. The case stems from a directive issued by former Attorney General Pam Bondi, who instructed the DOJ to "investigate, eliminate, and penalize" DEI programs deemed illegal in private-sector companies that receive federal funds. IBM is a government contractor. Following that directive, the DOJ launched its Civil Rights Fraud Initiative, which targets recipients of federal funds who "knowingly violate civil rights laws." The IBM settlement marks the first resolution the government has secured under the Civil Rights Fraud Initiative, according to TechCrunch.