IBM Pays $17 Million to Resolve Allegations of Discrimination Through Illegal DEI Practices

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[{"type":"text","content":" Today, Acting Attorney General Todd Blanche announced the first False Claims Act resolution secured under the Civil Rights Fraud Initiative, which he launched in May 2025.  International Business Machines Corporation (IBM) has agreed to pay the United States $17,077,043, inclusive of civil penalties, to resolve allegations that it violated the False Claims Act by failing to comply with anti-discrimination requirements in its federal contracts due to practices the United States contends discriminated against employees and applicants for employment because of race, color, national origin, or sex. Most federal contracts contain provisions that require contractors to comply with anti-discrimination requirements as to employees and applicants for employment.  As a condition to being a federal contractor, the company must certify that it will not discriminate against an employee or applicant for employment because of race, color, national origin, or sex and must further certify that it will take steps to ensure that applicants are employed, and employees are treated during employment, without regard to race, color, national origin, or sex. The settlement resolves allegations that IBM failed to comply with these requirements and knowingly maintained practices that the United States contends were discriminatory employment practices. “Racial discrimination is illegal, and government contractors cannot evade the law by repackaging it as DEI,” said Acting Attorney General Todd Blanche. “The Department launched the Civil Rights Fraud Initiative to root out this misconduct, hold offenders accountable, and end this practice for good.”     In connection with the settlement, the United States acknowledged that IBM took significant steps entitling it to credit for cooperating with the government in its investigation.  IBM made early disclosures of facts relevant to the government’s investigation gathered during IBM’s independent investigation, including information to assist in the calculation of damages and penalties.  The company also undertook voluntary remedial measures, including the termination and/or modification of various programs and practices at issue.    “Merit drives promotion and opportunity. Not someone’s sex or race,” said Associate Attorney General Stanley Woodward. “Today’s settleme...

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