IBM has agreed to pay $17 million to resolve a US Justice Department investigation under the False Claims Act, accused of anti-discrimination violations in federal contracts through diversity, equity, and inclusion (DEI) policies.
Allegations Against IBM
The DOJ claimed IBM falsely certified compliance while using a “diversity modifier” linking executive bonuses to demographic hiring targets, altering interview criteria by race/sex, setting race-sex goals per business unit, and limiting training opportunities to select groups—practices allegedly discriminating against non-diverse candidates.
Settlement Terms
Neither side admitted liability; IBM ended or modified implicated programs/policies and denied unlawful conduct, emphasizing merit-based hiring. Acting AG Todd Blanche framed it as rooting out “racial discrimination repackaged as DEI” via the Civil Rights Fraud Initiative launched under Trump in 2025.
Broader Backlash Context
This follows Missouri’s 2026 settlement and suits like a white worker’s quota claim (denied dismissal) and a Lebanese-American exec’s bias case. IBM maintains no quotas exist, prioritizing “right skills for clients.”
(Reporting by Rari Krishnan; Editin
