IBM Entered In $17 million settlement agreement on Friday with the US DOJ over allegations that he engaged in “illegal DEI practices” by taking into account “race, color, national origin, or sex” in his hiring and promotions. The DOJ also alleged that IBM used funds from its government contracts for DEI programs and then sought reimbursement.
IBM has denied any wrongdoing, and the settlement is not an admission of liability nor a concession that the DOJ’s claims were without merit. An IBM spokesperson told TechCrunch, “IBM is pleased to resolve this matter. Our workforce strategy is driven by the same principle: having the right people with the right skills that our customers depend on.”
Early last year, now-former Attorney General, Pam Bondi, instructed DOJ To “investigate, eliminate, and punish” any DEI programs deemed illegal at private sector companies like IBM that receive federal funding, which IBM does as a government contractor. Shortly afterward, the DOJ announced citizen Rights Fraud Initiative, That includes filing claims against recipients of federal funds who “knowingly violate civil rights laws.” The IBM settlement is the first time the government has secured a settlement under the initiative.
