Overview
- IBM, which reached the agreement Friday, will pay $17,077,043 to resolve claims it falsely certified compliance with anti-discrimination rules in federal contracts.
- The Justice Department alleged practices it views as unlawful, including diverse interview slates, a diversity-linked bonus modifier, race and sex demographic goals, and training or mentoring limited by protected characteristics.
- IBM denied engaging in the covered conduct and admitted no liability, and DOJ credited the company for early disclosures, help with damages calculations, and voluntary changes to or termination of challenged programs.
- The payment includes civil penalties and about $8.2 million in restitution, and DOJ said IBM allocated DEI-related costs to federal contracts and sought reimbursement while certifying compliance.
- The settlement covers alleged conduct dating to January 2019 and is being read by legal analysts as a test case that points to more FCA enforcement and potential whistleblower actions against contractors.