IBM Corporation agreed to pay $17 million to settle a Department of Justice lawsuit alleging violations related to the company's diversity, equity and inclusion (DEI) programs, the company announced Friday.

The settlement resolves DOJ allegations that IBM engaged in what the department characterized as illegal DEI practices. IBM did not admit to any misconduct as part of the agreement.

The case marks the first corporate penalty under what the Trump administration has labeled its "Civil Rights Fraud Initiative," which targets companies over their diversity programs. The DOJ has indicated it plans to scrutinize corporate DEI initiatives more closely.

IBM entered into the settlement agreement on Friday, bringing the case to a close without the company acknowledging wrongdoing. The technology company has not provided details about which specific aspects of its diversity programs prompted the federal investigation.

The settlement amount represents a significant financial penalty, though it is relatively modest for IBM, which reported revenue of over $60 billion in recent years. The agreement includes provisions for IBM to modify certain practices going forward, though specific details of those changes have not been disclosed.