IBM folds to Trump anti-DEI push, admits no misconduct but pays $17M penalty

While companies often enter settlements without admitting to alleged misdeeds, this settlement says IBM ended conduct that it denies having ever engaged in. In one sentence, the settlement agreement says that “the cooperation IBM provided included… taking voluntary remedial measures, including the termination and/or modification of various programs, policies, or other activities described in the Covered Conduct.” Two sentences later, the settlement states that “IBM denies that it engaged in the Covered Conduct.”

Trump admin’s aggressive push against DEI

IBM agreed to pay $17,077,043 to the government within 14 days of the settlement being signed. The amount includes civil penalties and $8.2 million in restitution to the government.

“Racial discrimination is illegal, and government contractors cannot evade the law by repackaging it as DEI,” Acting Attorney General Todd Blanche said. “The department launched the Civil Rights Fraud Initiative…