Is IBM ethical?

A New York federal judge won't let IBM Corp. entirely out of a suit from the village of Endicott alleging that the computer giant's old headquarters contaminated groundwater with forever chemicals and other pollution, only tossing claims related to one of the three wells at issue.

IBM Nets Deal To End Ex-Sales Specialist's Age Bias Suit - Law360

IBM was hiring at the same time, and Swanson applied for two management positions that fit his skills.

The new federal court complaint didn’t detail the outcome of any EEOC investigation but did point to other cases in which the agency found reasonable cause to believe IBM had a pattern and practice of firing older workers.

Austin lawsuit accuses IBM of age bias in AI hiring software

( In Re: IBM App.032-033.) On August 31, 2020, the EEOC issued a determination finding reasonable cause to believe that IBM engaged in classwide age discrimination, on the basis of “top-down messaging from [IBM’s] highest ranks directing managers to engage in an aggressive approach to significantly reduce the headcount of older workers to make room for Early Professional Hires” and evidence that “it was primarily older workers .

Appendix F 69a cause to believe that IBM discriminated against older employees between 2013 and 2018.

Indeed, over the last several years, IBM has been in the process of systematically laying off its older employees in order to build a younger workforce.

Appendix E 32a Equal Employment Opportunity Commission (“EEOC”) issued a determination that there was reasonable cause to believe IBM had in fact discriminated against older employees during the time Plaintiffs were laid off.

And a recent lawsuit against IBM alleges that AI tools discriminated against older workers.

IBM's layoffs during this period – the subject of numerous age discrimination lawsuits, many of which have quietly settled – can also be viewed through the lens of financial engineering to maximize executive compensation awards.

IBM accused of mislabeling mainframe sales to cheat market

IBM, an age discrimination complaint filed in September by two human resources managers.

The lawsuit describes the 2020 US Equal Employment Opportunity Commission (EEOC) determination [PDF] that "there is reasonable cause to believe that [IBM] has discriminated against [employees] on the basis of age." And it highlights reporting to that effect from ProPublica, as well as more recent revelations about IBM executives dismissing older workers as "dinobabies."

IBM and Kyndryl again sued for age discrimination

William Barlow, IBM’s former vice president of threat intelligence, alleged in the complaint that the companies failed to disclose multiple breaches over years by attackers linked to foreign governments and made false assurances about the security of their systems in order to win and keep federal contracts.

International Business Machines Corp. and AT&T Inc.’s computer systems were repeatedly breached by foreign hackers, and the companies concealed those intrusions from the US government in violation of the law, according to a lawsuit from a former IBM cybersecurity official.

It also says IBM downplayed or concealed incidents before entering government agreements requiring it to certify it had no significant unresolved cybersecurity issues.

IBM, AT&T accused by whistleblower of covering up foreign hacks | Fortune

International Business Machines Corp. and AT&T Inc.’s computer systems were repeatedly breached by foreign hackers, and the companies concealed those intrusions from the US government in violation of the law, according to a lawsuit from a former IBM cybersecurity official.

IBM to pay $10M to settle charges it bribed Chinese, Korean officials

Terry Gerton Let’s talk about IBM and their recent settlement on the 10th of April they reached a $17 million settlement over their DEI programs with the Department of Justice.

The DOJ's allegation that IBM considered race, national origin, or sex in hiring and promotion decisions lands in the exact place SHRM data shows workers are already watching.

For example, similar to the October complaint, the executive alleged that following President Donald Trump's January 2025 executive order directing federal agencies and federal contractors to end DEI programs, IBM removed "several high profile African American employees," despite having "no performance-based reason to terminate" them, to appease the Trump administration and retain favored status for securing large federal contracts.

IBM allegedly considered factors such as race, color, national origin, and sex when making employment decisions. The company's actions included using a diversity modifier that linked employee bonuses to demographic targets, the news release stated.

IBM Agrees To Pay The US $17M In Settlement Over A Lawsuit Accusing The Tech Firm Of Promoting DEI

‌Acting Attorney ​General Todd Blanche said on ‌Friday ⁠that IBM ⁠has agreed ​to ​pay $17 ​million ‌to resolve allegations of discrimination through ‌illegal ​diversity, ​equity ​and ‌inclusion practices.

IBM to pay $17 million to settle discrimination allegations, DOJ says

The settlement stems from allegations by the U.S. Department of Justice that IBM, as a federal contractor, "knowingly" made false claims about compliance with anti-discrimination laws while implementing policies that considered race and sex in employment decisions.

IBM Pays $17 Million To Settle DOJ DEI Allegations: Executive Bonuses Tied To Demographic Targets

IBM strikes $17M deal to end feds’ probe of DEI programs

For example, the agency claimed that IBM's compensation practices caused employees to take these protected categories into account when making employment decisions.

Per the settlement agreement, DOJ alleged that IBM knowingly violated Title VII of the 1964 Civil Rights Act and discriminated against applicants and employees on the basis of race, color, national origin or sex.

The IBM settlement is a reminder that employment decisions must be built on criteria that can withstand scrutiny.

The DOJ’s allegation that IBM considered race, national origin, or sex in hiring and promotion decisions lands in the exact place SHRM data shows workers are already watching.

A former New York-based IBM employee accused the company of favoring South Asian workers at the expense of African Americans, and blamed the Trump administration's anti-diversity, equity and inclusion policies as the impetus for the alleged wrongful treatment, according to a racial discrimination lawsuit filed in federal court in White Plains.

The DOJ in May 2025 began using the False Claims Act to target diversity initiatives at colleges and alleged that IBM, as a contractor, violated the act by maintaining “practices that the United States contends were discriminatory employment practices,” according to the announcement on Friday.

This past week, IBM agreed to pay $17 million over claims that its DEI programs allegedly violated the law—the first instance of an employer settling a case that the government brought under this initiative.

The settlement resolves allegations that IBM failed to comply with these requirements and knowingly maintained practices that the United States contends were discriminatory employment practices.

International Business Machines Corporation (IBM) has agreed to pay the United States $17,077,043, inclusive of civil penalties, to resolve allegations that it violated the False Claims Act by failing to comply with anti-discrimination requirements in its federal contracts due to practices the United States contends discriminated against employees and applicants for employment because of race, color, national origin, or sex.

investigated whether IBM's refusal to license microcode to "split" machines constituted a

The lawsuit accuses IBM and Kyndryl of age discrimination under the federal Age Discrimination in Employment Act (ADEA), retaliation under the Title VII of the Civil Rights Act, and various state employment law violations.

IBM and Kyndryl again sued for age discrimination

In effect, IBM deceived the market about its progress in developing Watson, cloud technologies, and other new sources of revenue, by deliberately misclassifying the money it was making from mainframe deals, assigning that money instead to other products, it is alleged.

SPECIAL REPORT IBM, along with 13 of its current and former executives, has been sued by investors who claim the IT giant used mainframe sales to fraudulently prop up newer, more trendy parts of its business.

IBM accused of mislabeling mainframe sales to cheat market

Similarly, IBM replaced its human resources functions with AI that handled around 94% of routine requests but was unable to meet the other 6%, which included ethical dilemmas.

International Business Machines is being investigated by the U.S. Justice Department over corruption allegations in Poland, Argentina, Bangladesh and Ukraine, adding to bribery charges from the Securities and Exchange Commission.

Also, as is typical for companies of IBM’s scope and scale, the company is party to actions and proceedings in various jurisdictions involving a wide range of labor and employment issues (including matters related to contested employment decisions, country- specific labor and employment laws, and the company’s pension, retirement and other benefit plans), as well as actions with respect to contracts, product liability, cybersecurity, data privacy, securities, foreign operations, competition law and environmental matters.

IBM agreed to pay $10 million to settle the SEC's charges.

Also, as is typical for companies of IBM’s scope and scale, the company is party to actions and proceedings in various jurisdictions involving a wide range of labor and employment issues (including matters related to contested employment decisions, country-specific labor and employment laws, and the company’s pension, retirement and other benefit plans), as well as actions with respect to contracts, product liability, cybersecurity, data privacy, securities, foreign operations, competition law and environmental matters.

In December 2024, the parties settled the lawsuit, with no material financial impact to IBM, and in January 2025, the lawsuit was discontinued with prejudice. On June 2, 2022, a putative class action lawsuit was filed in the United States District Court for the Southern District of New York alleging that the IBM Pension Plan miscalculated certain joint and survivor annuity pension benefits by using outdated actuarial tables in violation of the Employee Retirement Income Security Act of 1974.

Also, as is typical for companies of IBM’s scope and scale, the company is party to actions and proceedings in various jurisdictions involving a wide range of labor and employment issues (including matters related to contested employment decisions, country-specific labor and employment laws, and the company’s pension, retirement and other benefit plans), as well as actions with respect to contracts, product liability, cybersecurity, data privacy, securities, foreign operations, competition law and environmental matters.

Securities and Exchange Commission today charged International Business Machines Corporation ("IBM") with violating the books and records and internal control provisions of the Foreign Corrupt Practices Act of 1977 ("FCPA") as a result of the provision of improper cash payments, gifts, and travel and entertainment to government officials in South Korea and China.

As alleged in the SEC's Complaint, from 1998 to 2003, employees of IBM Korea, Inc., an IBM subsidiary, and LG IBM PC Co., Ltd., a joint venture in which IBM held a majority interest, paid cash bribes and provided improper gifts and payments of travel and entertainment expenses to various government officials in South Korea in order to secure the sale of IBM products.

IBM also agreed to pay disgorgement of $5,300,000, $2,700,000 in prejudgment interest, and a $2,000,000 civil penalty.

IBM TO PAY $10 MILLION IN SETTLED FCPA ENFORCEMENT ACTION

("IBM-Korea"), an IBM subsidiary, and LG IBM PC Co., Ltd. C'LG-IBM"), a joint venture in which IBM held a majority interest, made payments to various government officials in South Korea.

COMPLAINT

In response to CNA's queries, SLA said IBM first notified it on Jun 12 of a "security incident" involving the IBM-managed cloud environment.

SEC SETTLES FOREIGN CORRUPT PRACTICES ACT CASE AGAINST IBM

In the Order, the Commission finds that IBM-Argentina's former senior management provided IBM-Argentina's procurement department with fabricated documentation, including a backdated authorization letter and a document that stated incomplete and inaccurate reasons for hiring CCR.

Without admitting or denying the allegations in the complaint, IBM consented to the entry of a judgment ordering IBM to pay a $300,000 penalty.

In addition, the Commission announced the filing of a complaint in the United States District Court for the District of Columbia against IBM seeking a civil money penalty.

Without admitting or denying the Commission's findings, IBM consented to the entry of an Order that requires IBM to cease and desist from committing or causing any future violation of Section 13(b)(2)(A) of the Exchange Act.

The case involves violations of the books and records provisions of the Securities Exchange Act of 1934, resulting from presumed illicit payments to foreign officials by one of IBM's wholly-owned subsidiaries during 1994.

Specifically, the Order finds that, during 1994 and 1995, IBM-Argentina paid CCR approximately $22 million under the subcontract, of which at least $4.5 million was transferred to several bank directors by CCR.