IBM has settled a lawsuit with the US Department of Justice for over $17 million related to allegations of civil rights violations through its Diversity, Equity, and Inclusion practices.
The settlement follows accusations that IBM considered “race, color, national origin, or sex” in employment decisions, which the DOJ stated breaches the Civil Rights Act of 1964. This case aligns with a broader effort initiated by the Trump administration aiming to dismantle DEI programs, stemming from an executive order issued in early 2025.
IBM has denied any wrongdoing, asserting that the settlement does not imply an admission of liability. According to the DOJ, the company altered “interview criteria based on race or sex,” established “race and sex demographic goals for business units,” and implemented “a diversity modifier that tied bonus compensation to achieving demographic targets.”
An IBM spokesperson expressed satisfaction with the resolution, stating, “Our workforce strategy is driven by a single principle: having the right people with the right skills that our clients depend on.”
Todd Blanche, the acting attorney general, noted that this settlement represents one of the first resolutions from the Civil Rights Fraud Initiative, launched in May 2025. Other companies, including T-Mobile and Meta, have also modified their DEI policies in response to similar pressures in recent years.
