IBM PAYS $17M TO SETTLE DOJ DEI LAWSUIT
INDUSTRY DESKSUN, APR 12, 2026
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IBM has agreed to settle allegations that its diversity, equity, and inclusion practices violated federal civil rights laws. The company will pay over $17 million to resolve the Department of Justice's claims that it considered race, color, national origin, and sex in employment decisions.
The settlement marks the latest action in the Trump administration's effort to dismantle DEI initiatives across corporate America, following an executive order targeting such programs.
The DOJ accused IBM of making hiring and promotion decisions that took protected characteristics into account, potentially violating Title VII of the Civil Rights Act. IBM has not admitted wrongdoing as part of the settlement agreement.
The $17 million payment will be distributed to affected employees and applicants. This settlement follows similar legal challenges against other major corporations over their diversity programs, signaling increased federal scrutiny of DEI practices in the workplace.
The case reflects broader tensions around affirmative action and diversity initiatives, with the Biden administration having previously supported such programs before the recent policy shift.