By Chad Hemenway
Publication Date: 2026-04-13 15:33:00
In the first outcome of the U.S. Department of Justice’s Civil Rights Fraud Initiative, IMB has agreed to about $17 million to settle charges related to the company’s diversity, equity, and inclusion (DEI) practices.
“Racial discrimination is illegal, and government contractors cannot evade the law by repackaging it as DEI,” said Acting Attorney General Todd Blanche in a statement. He said the initiative, launched about a year ago, is meant to “root out this misconduct, hold offenders accountable, and end this practice for good.”
The Trump administration has repeatedly sought to rid DEI practices from public and private companies, government, and educational institutions since taking office. The Justice Department has launched numerous investigations of companies under the False Claims Act, which allows to recover funds from fraud. About $8.2 million of the total will be paid in restitution, the DOJ said.
IBM’s settlement with the DOJ, announced April 10,…
