IBM settles DEI discrimination allegations for $17.1M in first Civil Rights Fraud Initiative settlement
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IBM has agreed to pay $17.1 million to settle allegations of discrimination involving federal contracts. The settlement is the first under the Justice Department's Civil Rights Fraud Initiative, which aims to root out misconduct in diversity, equity, and inclusion practices.
The Justice Department has reached a settlement with IBM over allegations of discrimination. IBM will pay $17.1 million to resolve the claims. The company allegedly used a 'diversity modifier' to tie bonus compensation to demographic targets and altered interview criteria based on race and sex. IBM also allocated costs for these activities to its federal contracts and sought reimbursement. The Justice Department launched the Civil Rights Fraud Initiative to scrutinize federal contractors' diversity practices. The initiative follows President Trump's executive orders targeting diversity, equity, and inclusion practices. IBM is not admitting liability and denies engaging in the alleged conduct.
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