PayPal has agreed to waive roughly $30 million in fees to resolve a U.S. Department of Justice investigation into a 2020 program aimed at supporting Black- and minority-owned businesses. According to the government, the program unlawfully favored certain businesses on the basis of race, making the settlement a notable marker in the ongoing legal scrutiny of corporate diversity, equity, and inclusion initiatives.

The matter is significant because it shows how civil-rights enforcement is being applied outside the traditional employment setting.

The Department of Justice has announced that IBM will pay approximately $17.1 million to resolve allegations that the company violated anti-discrimination obligations tied to its federal contracts. According to DOJ, IBM’s diversity, equity, and inclusion practices allegedly discriminated on the basis of race, color, national origin, or sex, creating potential False Claims Act exposure when the company sought payment under contracts requiring compliance with federal non-discrimination rules.

The settlement is significant not only because of the dollar amount, but because it reflects a notable enforcement theory at the intersection of employment law, government contracting, and civil fraud.