IBM to pay $17 million as settlement linked to anti-DEI probe — What was the tech major accused of?
IBM will pay $17 million to settle a US government probe alleging discriminatory practices in its diversity, equity, and inclusion initiatives.Summary
IBM has agreed to pay $17,077,043 to the US government to resolve allegations that it violated the False Claims Act by failing to comply with anti-discrimination requirements in its federal contracts. The Department of Justice (DOJ) alleged that IBM knowingly made false claims regarding its hiring and employment practices, failing to ensure fairness based on race, color, national origin, or sex. Specifically, the DOJ cited IBM’s use of a “diversity modifier” tied to bonus compensation and limited access to training and development programs based on race or sex. While IBM cooperated with the investigation, terminating or modifying some programs, the company maintains it did not engage in unlawful conduct. This settlement marks the first resolution from the DOJ’s “Civil Rights Fraud Initiative,” established to address DEI policies using civil anti-fraud laws, and comes amidst broader political scrutiny of DEI practices, particularly from the Trump administration, which views them as potentially discriminatory.
(Source：Mint)