IBM Reaches $17 Million Settlement with DOJ Over DEI Practices
IBM has agreed to a $17 million settlement with the U.S. Department of Justice, concluding allegations that the company engaged in discriminatory Diversity, Equity, and Inclusion (DEI) practices. The Justice Department had claimed that IBM considered factors such as race, color, national origin, or sex in its hiring and promotion decisions. Furthermore, the DOJ alleged that IBM utilized funds from government contracts for its DEI initiatives and subsequently sought reimbursement.
IBM has asserted that it did not admit to any wrongdoing, and the settlement does not constitute an admission of liability or an acknowledgment that the DOJ's claims hold merit. A spokesperson for IBM stated, "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."
This development follows actions taken by the former attorney general, Pam Bondi, who earlier in the year directed the DOJ to investigate, eliminate, and penalize any DEI programs deemed illegal within private sector companies receiving federal funding, such as IBM, which is a government contractor. Subsequently, the DOJ launched the Civil Rights Fraud Initiative, aimed at pursuing claims against recipients of federal funds found to be in knowing violation of civil rights laws. This settlement with IBM represents the first resolution achieved by the government under this initiative.
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