IBM to pay $17 million in U.S. DEI settlement

Summary

IBM agreed to pay about $17 million to settle U.S. allegations tied to diversity hiring and promotion practices in federal contracts.

Why this matters

The settlement shows how the Justice Department is using the False Claims Act to scrutinize employment practices by federal contractors. It also reflects broader federal efforts to limit diversity, equity, and inclusion programs in government-related hiring and contracting.

IBM reached a settlement with the federal government Friday, agreeing to pay about $17 million to resolve allegations tied to diversity, equity, and inclusion practices.

The Justice Department alleged that the New York-based technology company “knowingly” made “false claims” about its hiring and employment practices in federal contracts, according to the settlement. IBM allegedly identified “diverse” candidates for hiring or promotion while developing race- and sex-based demographic goals.

IBM denied it had discriminatory or illegal diversity, equity, and inclusion practices. The settlement said the agreement was “neither an admission of liability by IBM nor a concession by the United States that its claims are not well founded.”

“IBM is pleased to have resolved this matter,” an IBM spokesperson told CNN in an email. “Our workforce strategy is driven by a single principle: having the right people with the right skills that our clients depend on.”

The Justice Department said in May 2025 that it began using the False Claims Act to challenge diversity initiatives at colleges and alleged that IBM, as a contractor, violated the law by maintaining “practices that the United States contends were discriminatory employment practices,” according to Friday’s announcement.

“Racial discrimination is illegal, and government contractors cannot evade the law by repackaging it as DEI,” Blanche said in Friday’s press release. “The Department launched the Civil Rights Fraud Initiative to root out this misconduct, hold offenders accountable, and end this practice for good.”

The False Claims Act dates to the Civil War era and allows the government to recover up to three times its damages, plus penalties, according to the Justice Department. The law also allows private citizens to sue on the government’s behalf and keep a share of any recovery.

  • Historians: Archives gave no records pledge in suit

    In court filings Tuesday, the historians, joined by government transparency group American Oversight, asked for an emergency order. They said that, without court intervention, presidential records they plan to use in research “will be irretrievably lost.”

    Full story +

  • Booking.com says hackers accessed customer data

    According to Booking.com’s website, 6.8 billion customers have booked hotel rooms and homes through the platform since 2010.

    Full story +

  • Spain PM Sanchez’s wife charged in corruption case

    Gomez was charged with embezzlement, influence peddling, corruption in business dealings, and misappropriation of funds, according to the ruling dated April 11.

    Full story +

  • French lawmakers back colonial-era art returns

    France holds tens of thousands of artworks and artifacts from its former colonial empire. Under current law, each item in the national collection must be approved individually by Parliament before it can be returned.

    Full story +

  • Magyar says he’d take Putin call, urge end to war

    It remains unclear how Magyar will govern on divisive issues. During the campaign, he largely avoided discussing Ukraine and LGBTQ rights, and he was previously a longtime conservative insider in Orbán’s party.

    Full story +

  • Hezbollah says it won’t honor U.S. Israel-Lebanon talks

    The meeting would be the first direct face-to-face talks in decades between envoys from Lebanon and Israel, who do not have diplomatic relations.

    Full story +

  • U.S., allies to hold Philippines drills with 17,000

    Training will include maritime security, coastal defense, combined fires integration, ship-to-shore offloads, and the sustained movement of supplies and equipment.

    Full story +

  • U.S. Begins Iran Port Blockade, Talks Remain Stalled

    Iran’s armed forces called restrictions on vessels in international waters illegal and said they amounted to piracy. The Islamic Revolutionary Guard Corps warned that “approaching military vessels to the Strait of Hormuz is considered a violation of the ceasefire.”

    Full story +

  • UN says Sudan drone strikes killed nearly 700

    Denise Brown, the United Nations resident coordinator in Sudan, said Monday that the U.N. appeal for $2.9 billion for Sudan this year was only 16% funded as contributions from member states declined.

    Full story +

  • Marines decline Okinawa meeting over helicopter landing

    The Marine Corps said a March 6 helicopter landing near a Nago baseball field followed procedure and did not warrant accepting Okinawa’s protest letter.

    Full story +