---
title: DOJ Announces First False Claims Act Settlement of Alleged ‘Illegal DEI Practices’ by IBM
description: On April 10, 2026, the DOJ Civil Division announced a $17 million settlement with IBM, the Division’s first False Claims Act (FCA) settlement under a Civil Rights Fraud Initiative announced in May 2025.
image: https://bertramllp.com/hubfs/department-of-justice-logo%20(LinkedIn)-2.png
---

[DEI](https://bertramllp.com/blog/tag/dei)

# DOJ Announces First False Claims Act Settlement of Alleged ‘Illegal DEI Practices’ by IBM

April 14, 2026 [Connie Bertram and Adair Sand](https://bertramllp.com/blog/author/connie-bertram-and-adair-sand)

On April 10, 2026, the DOJ Civil Division [**announced**](https://www.justice.gov/opa/pr/ibm-pays-17-million-resolve-allegations-discrimination-through-illegal-dei-practices) a $17 million settlement with IBM, the Division’s first False Claims Act (FCA) settlement under a Civil Rights Fraud Initiative announced in May 2025. The settlement resolves allegations of the Division that IBM violated the FCA by failing to comply with anti-discrimination provisions in its federal contracts through the adoption of programs and policies promoting diversity, equity and inclusion (DEI) practices.

As outlined in the [**settlement agreement**](https://www.justice.gov/opa/media/1435761/dl), the Division alleged that IBM engaged in the following practices that violated federal anti-discrimination statutes:

This settlement follows several major actions from the administration and DOJ emphasis on eliminating “illegal DEI.”

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