IBM settles DOJ suit over DEI practices

IBM has agreed to a $17 million settlement with the U.S. Department of Justice to resolve allegations of discriminatory hiring and promotion practices related to its Diversity, Equity, and Inclusion (DEI) programs. The DOJ claimed IBM considered race, color, national origin, or sex in its employment decisions and improperly used federal contract funds for DEI initiatives. While IBM denies wrongdoing and the settlement is not an admission of liability, this marks the first resolution under the DOJ's Civil Rights Fraud Initiative targeting federal fund recipients who violate civil rights laws. The company stated its workforce strategy focuses on hiring the most qualified individuals.