IBM to pay $17 million to settle US government probe over DEI

< />By Kanishka Singh<br><br> WASHINGTON, IBM has agreed to pay $17 million to settle a U.S. government probe over the firm’s diversity, equity and inclusion practices, which President Donald Trump’s administration has cracked down on during his second term in office. <br><br><!– PROMOSLOT_M –> The settlement ‌marks the ⁠first ⁠resolution from the U.S. Department of Justice’s unit formed last year called the ” captionrendered=”1″ data-src=”https://etimg.etb2bimg.com/photo/130192805.cms” height=”442″ href=”http://hr.economictimes.indiatimes.com/tag/civil+rights+fraud+initiative” id=”35083451″ keywordseo=”Civil-Rights-Fraud-Initiative” loading=”eager” source=”keywords” src=”https://hr.economictimes.indiatimes.com/images/default.jpg” type=”General” weightage=”20″ width=”590″></img>Civil Rights Fraud Initiative” to crack down on DEI policies using a civil anti-fraud law. </p>
<p> Trump has targeted public and private organizations – from government agencies to private universities – over DEI practices that civil ⁠rights advocates ‌say help address historic inequities for marginalized groups like women and ethnic minorities.</p>
<p> In a settlement ⁠signed by the DOJ and IBM, the U.S. government alleged that IBM’s practices included using a “diversity modifier” that “tied bonus compensation to achieving demographic targets,” among other claims. </p>
<p> The settlement also said IBM terminated or modified various programs and policies, but that the company denied engaging in unlawful conduct.</p>
<p> “This agreement ‌is neither an admission of liability by IBM nor a concession by the United States that its claims are ⁠not well-founded,” the agreement said.</p>
<p> The White House casts DEI as anti-merit and discriminatory against groups like white people and men. Trump has signed executive orders asking federal contractors and subcontractors to eliminate DEI.</p>
<p> Many U.S. companies scaled back or modified diversity policies after Trump’s orders. </p>
<p> (Reporting by Kanishka Singh and Jasper Ward in Washington; editing by Michelle Nichols and David Gaffen)                    </p>
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  • Published On Apr 11, 2026 at 06:54 PM IST

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