IBM pays $17 million fine to end Justice Department lawsuit over DEI programs

IBM I entered inside Settlement agreement worth $17 million Friday with the U.S. Department of Justice over allegations that it engaged in “unlawful DEI practices” by considering “race, color, national origin, or sex” in hiring and promotions. The Justice Department also alleged that IBM used money from its government contract for DEI programs and then sought compensation.

IBM has denied any wrongdoing, and the settlement represents neither an admission of liability nor a concession that the DOJ’s allegations are without merit. “IBM is pleased to have resolved this matter. Our workforce strategy is driven by one principle: having the right people with the right skills that our customers depend on,” an IBM spokesperson told TechCrunch.

Earlier last year, former Attorney General Pam Bondi, The Ministry of Justice instructed “Investigate, eliminate and punish” any DEI programs deemed illegal at private sector companies, such as IBM, that receive federal funds, which is what IBM does as a government contractor. Shortly after, the Ministry of Justice announced the civilian Rights Fraud Initiative, Which includes filing suits against recipients of federal funds who “willfully violate civil rights laws.” The IBM settlement marks the first time the government has obtained a resolution under this initiative.