Two legal groups are suing IBM over claims the technology company discriminated against an older white employee for the purpose of advancing diversity, equity and inclusion (DEI) initiatives.
America First Legal (AFL) and JW Howard Attorneys, LTD, filed a federal lawsuit against IBM on behalf of former employee John Loeffler, 64.
The lawsuit alleges that Loeffler was targeted to “advance IBM’s internal DEI quotas,” accusing the company of violating Title VII of the Civil Rights Act of 1964.
/1🚨BREAKING — AFL just SUED IBM for illegal DEI-driven discrimination.
IBM leadership on a team call:
“Look at all the black and brown faces on this call.”
“If he keeps it up, he can expect a long career at IBM and lots of bonuses.” pic.twitter.com/Qem81fa8iV
— America First Legal (@America1stLegal) June 25, 2025
The lawsuit claims that despite Loeffler’s history of positive performance reviews and successfully leading a $30 million project, IBM placed him on a Performance Improvement Plan (PIP) with conditions that were “impossible to meet.”
Loeffler objected to the plan and his recently assigned manager, Eric Castillo, conceded that the PIP’s goals were unattainable, according to the lawsuit. Loeffler’s lawyers contend the PIP was intentionally designed to force him out of his role in favor of younger, non-white staff.
“The PIP was pretextually designed to remove Loeffler from his position because he is an older white male,” the lawsuit states. “IBM discriminates in favor of younger workers generally (as the EEOC explicitly found), and, in the name of ‘diversity,’ specifically discriminates against white males”
The lawsuit alleges that, after terminating Loeffler due to his inability to meet the targets, the company replaced him with two younger, non-white employees. (RELATED: Man Sues IBM Company After They Allegedly Fired Him For Being Too White)
Prior to being fired, Loeffler had a nearly decade-long track record of success at IBM, according to AFL.
According to the lawsuit, Loeffler’s 2021 performance review states, “John, your excellent work ethic and support for your teammates and others speaks for itself. I particularly would like to highlight the great work you continue to do.”
The lawsuit also alleges that IBM denied Loeffler commissions he earned on a $30 million government contract that he worked on.
“Others on his team (who did less work on the project than he did), including racial minorities, were credited with work and afforded commission on the project, while he was denied it,” AFL reported.
This lawsuit comes after years of IBM engaging in DEI policies that target white men. In 2021, video footage surfaced of IBM’s CEO, Arvin Krishna, calling for racial and gender quotas in the hiring process. Krishna supported using coercive tactics to reach their goals, including financial incentives for those who met the quotas. (RELATED: IBM Pulls Plug On Left-Wing Ad Policies After Receiving Heat From Conservative Orgs)
“Mr. Castillo, and/or his superiors, could receive their full bonus only by removing older white males and replacing them with younger ‘underrepresented’ minorities,” the lawsuit states.
The lawsuit alleges that Castillo was praised on a 2023 Webex call for his efforts to hire “diverse” candidates.
“Mr. Castillo has done a great job injecting diverse talent on this team, and if he keeps it up, he can expect a long career at IBM and lots of bonuses,” said Sergio Amoni, the host of the call.
IBM’s 2022 annual report described a “diversity modifier” as a factor in compensation, according to AFL.
“It is a profound tragedy that this iconic company has lost its way,” said Laura Stell, an attorney at AFL. “By abandoning merit and equal opportunity, IBM has become a cautionary tale of what happens when corporations place ideology above the rule of law.”
According to AFL, this is the company’s third lawsuit against IBM regarding discriminatory employment practices that target white males.