Published on April 12, 2026
IBM has settled a lawsuit with the U.S. Department of Justice (DOJ) regarding allegations of discrimination stemming from its Diversity, Equity, and Inclusion (DEI) practices. The company will pay over $17 million to resolve accusations of violating civil rights laws , color, national origin, or sex in hiring decisions.
The DOJ claimed that IBM’s practices included modifying interview criteria based on race or gender and establishing demographic targets that affected bonus compensation. IBM maintained that it did not admit to any wrongdoing through the settlement, and the government clarified that its allegations were not unfounded.
An IBM spokesperson expressed satisfaction in resolving the issue and emphasized the company’s commitment to hiring individuals with the appropriate skills. This settlement follows a broader movement sparked administration’s 2025 executive order aimed at halting DEI programs.
Todd Blanche, the acting attorney general, noted this settlement as a significant outcome of the Civil Rights Fraud Initiative launched in May 2025. IBM joins other companies, including T-Mobile and Meta, that have shifted away from DEI initiatives in response to similar pressures.
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