IBM Faces $17M Settlement Over Anti-DEI Probe - Inc Business
IBM will pay $17 million to settle a DOJ investigation into its diversity, equity, and inclusion (DEI) policies and practices.Summary
The U.S. Department of Justice (DOJ) announced on April 10th that IBM has settled a federal investigation by paying $17 million, resolving allegations that the company made “false claims” in government contracts regarding its hiring and employment practices. This settlement marks the first resolution under the DOJ’s “Civil Rights Fraud Initiative,” established to enforce civil anti-fraud laws against DEI regulations. The DOJ argued that IBM’s practices, including a “diversity modifier” linked to bonus compensation, constituted workplace discrimination. While IBM cooperated with the probe, voluntarily changing some practices and disclosing relevant information, the company also denied wrongdoing. The White House views DEI policies as potentially discriminatory, and the settlement aligns with recent efforts to end their use by federal contractors, stemming from Trump-era executive orders. The case was managed by the Commercial Litigation Branch, Fraud Section, of the Civil Division of the Justice Department.
(Source：Inc Business)