Trending Now - IBM Agrees to $17 Million Settlement Over DEI Practices

WHO:

Engadget - IBM, U.S. Department of Justice (DOJ), Todd Blanche (acting attorney general)

CNN - IBM, U.S. Department of Justice (DOJ), Todd Blanche (acting attorney general)

WHAT:

Engadget - IBM has agreed to pay more than $17 million to settle allegations of violating civil rights laws with its diversity, equity, and inclusion (DEI) practices.

CNN - IBM will pay roughly $17 million to resolve allegations of illegal DEI practices.

Engadget - The DOJ alleged that IBM altered interview criteria based on race or sex, developed race and sex demographic goals for business units, and used a diversity modifier that tied bonus compensation to achieving demographic targets.

CNN - The DOJ alleged that IBM knowingly made false claims about its hiring and employment practices in its federal contracts.

WHERE:

CNN - IBM is based in New York.

WHEN:

Engadget - The settlement agreement was announced on Friday, April 8th, 2026.

Engadget - The Civil Rights Fraud Initiative was launched in May 2025.

CNN - The Trump administration began cracking down on DEI practices in 2025.

WHY:

Engadget - The settlement is part of a longstanding effort from the Trump administration to end DEI programs, initiated by an executive order in early 2025.

CNN - The DOJ's actions are aimed at rooting out misconduct and holding offenders accountable under the Civil Rights Fraud Initiative.

HOW:

CNN - The DOJ used the False Claims Act to target diversity initiatives at colleges and alleged that IBM violated the act by maintaining discriminatory employment practices.

(UPDATED April 11, 2026 17:09 UTC)

IBM has agreed to pay more than $17 million to settle allegations of violating civil rights laws related to its diversity, equity, and inclusion practices, with the settlement announced on Wednesday. The U.S. Department of Justice alleged that IBM altered interview criteria based on race or sex and made false claims about its hiring practices in federal contracts. This settlement is part of a broader initiative from the Trump administration aimed at ending DEI programs, which began with an executive order in early 2025.