DEI Dispute Deal:
IBM Settles $17M Case Amid Federal Bias Allegations
IBM has agreed to a $17 million settlement while denying allegations brought by the United States Department of Justice. The amount includes both compensation and civil penalties.
This marks the first resolution under the “Civil Rights Fraud Initiative” established in May 2025. The Department of Justice alleged that federal contractor IBM engaged in discrimination in hiring based on race and gender. According to the complaint lodged, the company identified “diverse” candidates, set demographic targets for business units, and used these diversity criteria in awarding bonuses.
However, IBM has denied all such allegations. In a statement, a company spokesperson said, “Our workforce strategy is guided by a single principle: hiring the right people with the right skills.” The company added that it is satisfied to have resolved the matter.
Notably, after the Trump administration assumed office, federal agencies were instructed to eliminate DEI programs. T-Mobile and Meta also discontinued their DEI initiatives last year.
DBTech/ BMT/ OR
