IBM pays $17M to settle DOJ suit over DEI software

IBM he got into a A $17 million contract Friday by the US Department of Justice in a statement that it conducted “unlawful DEI” in consideration of “race, color, national origin, or sex” in hiring and promotion. The DOJ also alleged that IBM spent money from its government contracts on DEI programs and is seeking reimbursement.

IBM has denied any wrongdoing, and the retraction is neither an admission of guilt nor an admission that the DoJ’s allegations were baseless. “IBM is pleased to have resolved this issue. Our business strategy is driven by one principle: having the right people with the skills our customers rely on,” an IBM spokesperson told TechCrunch.

Earlier last year, former state attorney general Pam Bondi advised the DOJ to “investigate, eliminate, and punish” any DEI programs deemed illegal by private companies, such as IBM, that receive federal funding, which IBM operates as a government contractor. Soon after, the DOJ announced and Civil Freedom to Lie Initiative, which includes filing lawsuits against recipients of federal funds who “knowingly violate civil rights laws.” The settlement of IBM is the first time that the government has obtained a decision in this way.