While companies often enter settlements without admitting to alleged misdeeds, this settlement says IBM ended conduct that it denies having ever engaged in. In one sentence, the settlement agreement says that “the cooperation IBM provided included… taking voluntary remedial measures, including the termination and/or modification of various programs, policies, or other activities described in the Covered Conduct.” Two sentences later, the settlement states that “IBM denies that it engaged in the Covered Conduct.”
Trump admin’s aggressive push against DEI
IBM agreed to pay $17,077,043 to the government within 14 days of the settlement being signed. The amount includes civil penalties and $8.2 million in restitution to the government.
“Racial discrimination is illegal, and government contractors cannot evade the law by repackaging it as DEI,” Acting Attorney General Todd Blanche said. “The department launched the Civil Rights Fraud Initiative to root out this misconduct, hold offenders accountable, and end this practice for good.”
The Trump administration has taken an aggressive stance against DEI programs that were implemented to help historically underrepresented groups. President Trump has issued several executive orders on DEI, including one last month that targets federal contractors.
In addition to ending DEI policies within the government, the Trump administration uses multiple legal and regulatory tools to pressure private companies. For example, the Federal Communications Commission chairman has refused to approve mergers unless the merging companies end DEI initiatives.
“IBM is pleased to have resolved this matter,” the company said in a statement provided to Ars. “Our workforce strategy is driven by a single principle: having the right people with the right skills that our clients depend on.”
The Justice Department credited IBM for cooperating in its investigation and for ending DEI programs. “IBM made early disclosures of facts relevant to the government’s investigation gathered during IBM’s independent investigation, including information to assist in the calculation of damages and penalties,” the department’s press release said. “The company also undertook voluntary remedial measures, including the termination and/or modification of various programs and practices at issue.”