IBM has agreed to pay $17 million to settle a Trump administration claim that its DEI policies discriminated against employees and job applicants. The settlement is the first under the Civil Rights Fraud Initiative, which treats DEI complaints against government contractors as potential fraud. IBM admitted no misconduct but settled to resolve allegations that it used race and gender considerations in employment decisions.
Background
The Trump administration created the Civil Rights Fraud Initiative in 2025 to pursue DEI-related complaints against government contractors under the False Claims Act, which imposes significant penalties for fraud. This represents a novel legal approach to challenging corporate diversity programs.
- Source
- Ars Technica
- Published
- Apr 14, 2026 at 01:53 AM
- Score
- 6.0 / 10