IBM will pay $17 million to settle allegations by the U.S. government regarding its diversity, equity, and inclusion (DEI) practices. The settlement is the first under the Civil Rights Fraud Initiative established to scrutinize DEI policies. IBM denied any unlawful conduct under the settlement terms.

IBM Settles $17 Million DEI Practices Probe

IBM has agreed to pay $17 million to resolve a U.S. government investigation into its diversity, equity, and inclusion (DEI) practices, targeting the firm's efforts under President Donald Trump's administration. The settlement is the first resolution from the Department of Justice's Civil Rights Fraud Initiative.

The investigation alleged that IBM tied bonus compensation to achieving demographic targets, claiming the firm's practices addressed historic inequities for marginalized groups. The DOJ and IBM's agreement led to policy adjustments, but IBM denied any wrongdoing.

This initiative aligns with the White House's view of DEI policies as discriminatory, leading Trump to issue orders against such practices, prompting many companies to revise their diversity policies.

(With inputs from agencies.)