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IBM entered\u00a0into<\/span> a $17 million settlement agreement<\/a> on Friday with the U.S. Department of Justice over allegations that it engaged in \u201cillegal DEI practices\u201d by taking into account \u201crace, color, national origin, or sex\u201d in its hiring and promotions.\u00a0The DOJ also alleged that IBM used funds from its government contract for DEI programs and then sought reimbursement.<\/p>\n IBM denied any wrongdoing, and the settlement is not an admission of liability nor a concession that the DOJ\u2019s claims were without merit. \u201cIBM is pleased to have resolved this matter. Our workforce strategy is driven by a single principle: having the right people with the right skills that our clients depend on,\u201d an IBM spokesperson told TechCrunch.<\/p>\n Earlier last year, the now-former attorney general, Pam Bondi, instructed the DOJ<\/a> to \u201cinvestigate, eliminate, and penalize\u201d any DEI programs deemed illegal in private-sector companies, like IBM, that receive federal funds, which IBM does as a government contractor. Shortly after, the DOJ announced the\u00a0<\/span>Civil<\/span> Rights Fraud Initiative<\/a>, which involves filing claims against recipients of federal funds who \u201cknowingly violate civil rights laws.\u201d\u00a0The IBM settlement marks the first time the government has secured a resolution under the initiative.<\/p>\n<\/div>\n