
"Racial discrimination is illegal, and government contractors cannot evade the law by repackaging it as DEI. The Department launched the Civil Rights Fraud Initiative to root out this misconduct, hold offenders accountable, and end this practice for good."
"IBM is pleased to have resolved this matter. Our workforce strategy is driven by a single principle: having the right people with the right skills that our clients depend on."
In 2025, the Justice Department launched the Civil Rights Fraud Initiative to investigate companies and academic institutions for potential violations of the False Claims Act. IBM agreed to pay $17 million over claims that its DEI programs violated anti-discrimination protections. The government identified practices such as a diversity modifier for bonuses and diverse interview slates as problematic. The settlement did not imply liability from IBM, which has since altered some of its DEI programs. The initiative aims to hold offenders accountable for misconduct related to racial discrimination.
#civil-rights-fraud-initiative #dei-programs #ibm-settlement #anti-discrimination-law #federal-contractor-compliance
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