Overview
- IBM, which reached the agreement Friday, will pay $17,077,043 to resolve claims that its federal contracting certifications conflicted with anti-discrimination rules.
- The DOJ alleged IBM used a “diversity modifier” tying bonuses to demographic targets, set race and sex goals, altered interview slates to favor certain groups, and limited some training and leadership programs by race or sex.
- The settlement is the first secured under the Justice Department’s Civil Rights Fraud Initiative, launched in May 2025 to target civil-rights violations by federal contractors through the False Claims Act.
- IBM denied unlawful conduct, received credit for early disclosures and program changes, and the DOJ said the deal resolves allegations without any finding of liability.
- The False Claims Act allows the government to seek up to triple damages plus penalties, a powerful tool the DOJ is applying during President Trump’s DEI rollback that could push contractors to rethink bonus metrics and selective programs.