By ShaCamree Gowdy
Publication Date: 2026-04-13 16:45:00
International Business Machines Corp. (IBM) has agreed to pay the United States $17 million to settle a lawsuit accusing the tech firm of promoting diversity, equity, and inclusion (DEI) policies in its federal contracts.
The U.S. Department of Justice announced the settlement in a news release on Friday, April 10, 2026. The agreement marks the first resolution under the department’s Civil Rights Fraud Initiative, launched in May 2025 to target DEI-related practices using a civil anti-fraud law.
“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.”
IBM allegedly considered factors such as race, color, national origin, and sex when making employment decisions. The company’s actions included using a diversity…
