Justice Department Settles with IBM Over DEI Policy Allegations
The U.S. Justice Department has reached a $17 million settlement with IBM over allegations that the company's diversity, equity, and inclusion (DEI) policies violated antidiscrimination laws. This settlement marks the first successful use of the False Claims Act under the department's new Civil Rights Fraud Initiative. The Justice Department accused IBM of misrepresenting its compliance with antidiscrimination laws to secure government contracts. While IBM did not admit wrongdoing, the settlement is part of a broader effort by the Trump administration to scrutinize DEI practices in organizations receiving federal funding.