International Business Machines Corp. (NYSE:IBM) agreed to pay $17.07 million to settle federal allegations of illegal diversity, equity and inclusion (DEI) hiring practices on Friday, marking the Justice Department’s first False Claims Act resolution under its Civil Rights Fraud Initiative.
IBM Settles Federal DEI Allegations
The Department of Justice (DOJ) alleged IBM falsely certified compliance with federal anti-discrimination requirements while knowingly maintaining race- and sex-based hiring and promotion practices.
Acting Attorney General Todd Blanche said in the official press release, “Racial discrimination is illegal, and government contractors cannot evade the law by repackaging it as DEI.”
An IBM spokesperson told CNN the company’s workforce strategy is driven by “having the right people with the right skills.” The settlement is neither an admission of liability by IBM nor a concession by the U.S. that its claims are not well-founded.
IBM did not immediately respond to Benzinga‘s request for comment.
The settlement marks …
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