IBM has agreed to pay $17 million to the U.S. Department of Public Affairs (Phenomenomen) for allegations of "illegal DEI practices" that it used in its hiring and promotions. The DOJ also alleged that the company used funds from its government contract for DEI programs and sought reimbursement. The settlement is not an admission of liability or a concession that the claims are without merit. The government has launched the Civil Rights Fraud Initiative, which seeks to resolve these issues.