First DEI Settlement Under the Civil Rights Fraud Initiative Targets Conduct Pre-Dating the Current Administration

On April 10, 2026, the Department of Justice (“DOJ”) announced a $17 million civil False Claims Act (“FCA”) settlement with IBM Corporation. This is the first FCA settlement reached under the Civil Rights Fraud Initiative, which was created in May of 2025 and tasked with using the FCA as a tool to prosecute federal contractors that engage in diversity, equity, and inclusion (“DEI”) programs that violate federal anti-discrimination laws. The IBM settlement offers insight into what federal contractors can expect from DOJ enforcement of the Administration’s campaign against DEI.