IBM entered the On Friday, the U.S. Department of Justice reached a $17 million settlement agreement over allegations that the agency engaged in “unlawful DEI practices” that considered “race, color, national origin, and sex” in hiring and promotions. The Department of Justice also alleged that IBM used funds from government contracts for DEI programs and sought subsequent reimbursement.
IBM denies any wrongdoing, and the settlement is neither an admission of liability nor a concession that the Justice Department’s claims were without merit. “IBM is pleased to have resolved this issue. Our workforce strategy is driven by a single principle: having the right people with the right skills that our clients trust,” an IBM spokesperson told TechCrunch.
Early last year, current and former Attorney General Pam Bondi directed the Justice Department to “investigate, eliminate, and penalize” DEI programs deemed illegal at private companies that receive federal funding, such as IBM, which does so as a government contractor. Shortly after, the Department of Justice made an announcement. of Civil matter Title Fraud Initiative. This includes claims against recipients of federal funds who “willfully violate civil rights laws.” The IBM settlement marks the first time a government has secured a resolution under this initiative.
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