Accenture to pay $25 million to settle US government allegations over DEI


The logo of Accenture is displayed on a building, on the first day of the annual meeting in Davos, Switzerland, January 15, 2024. REUTERS/Denis Balibouse

WASHINGTON, Sept 14 (Reuters) - ⁠IT consulting firm Accenture will pay $25 million to settle U.S. ⁠government allegations over diversity practices, which President Donald Trump's administration has ‌targeted in his second term in office.

"Accenture shall pay to the United States $25,000,000, inclusive of civil penalties and interest on the Settlement Amount at a rate of 4% per annum ​from September 9, 2026," the settlement agreement made ⁠public on Monday said. It ⁠was signed by the U.S. Department of Justice and Accenture.

The Trump administration has ⁠penalized ‌public and private organizations, from government agencies to universities, over DEI practices that civil rights advocates say help address historic inequities for ⁠marginalized groups such as women, the LGBT community and ​ethnic minorities.

The White ‌House casts DEI as anti-merit and discriminatory against white people and men. ⁠Trump has ​signed executive orders asking federal contractors and subcontractors to eliminate DEI. Civil rights groups say such steps roll back social progress.

Many U.S. companies scaled back or modified ⁠diversity policies after Trump's orders.

Deloitte agreed to pay $21.5 ​million to settle a DOJ probe over diversity practices, according to an agreement made public in August. IBM agreed to pay $17 million to settle a similar ⁠U.S. government probe, an agreement revealed in April.

The Justice Department had alleged Accenture took race and sex into consideration when it made hiring and promotion decisions to achieve demographic goals.

Accenture said it complied with applicable laws and that ​the resolution agreement did not constitute an admission ⁠of liability.

"We have cooperated with the government's review, and we are pleased to ​put this matter behind us to avoid ‌the costs and resource demands of prolonged ​litigation," an Accenture spokesperson said.

The settlement agreement said Accenture denied engaging in discrimination.

(Reporting by Kanishka Singh in Washington; Editing by Muralikumar Anantharaman)

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