Overview
- IBM, which agreed Friday, April 10 to pay $17,077,043, resolved DOJ allegations under the False Claims Act tied to its DEI program while denying liability and receiving cooperation credit.
- DOJ said IBM tied bonuses to diversity targets, used diverse interview slates and sourcing, set race and sex goals, and limited some training and mentorship to selected demographic groups.
- The resolution is the first under DOJ’s Civil Rights Fraud Initiative, which applies the False Claims Act to contractors that certify compliance with anti-discrimination rules tied to federal payments.
- Legal analyses report DOJ cited the federal Equal Opportunity clause in procurement contracts to argue IBM’s certifications were false when such DEI practices were in place.
- Separately, the EEOC said March 19 that Planned Parenthood of Illinois will pay $500,000 over segregated racial affinity caucuses and alleged disparate treatment of white staff, signaling broader enforcement across agencies.