Consulting's Trump-era DEI bill hits $63 million as Accenture joins Deloitte and IBM in settling discrimination claims

Accenture will pay $25 million to settle U.S. Justice Department claims it discriminated based on race and sex in hiring and promotions while holding federal contracts. The company denies wrongdoing and says the settlement is not an admission of liability. The Justice Department alleges Accenture used demographic targets and separate review processes for promotions. Accenture's federal contracts have also faced recent cuts by the Pentagon.

Accenture agreed to pay $25 million to settle US DOJ allegations involving Accenture Federal Services' employment practices, including $11.627 million in restitution. The settlement follows similar agreements by Deloitte and IBM, totaling $63.6 million combined. Accenture denies wrongdoing, and the settlement does not admit liability. The case involves alleged demographic hiring and promotion targets from 2017 to the agreement's effective date.

Accenture agreed to pay $25 million to settle U.S. allegations of race and sex discrimination in hiring. The company, a major federal contractor, stated it cooperated with the review. Similar settlements were reached by Deloitte ($21.5 million) and IBM ($17 million). The DOJ emphasized that federal contractors must not consider race or sex in employment decisions.

Accenture (ACN) stock rose 6.1% after Morgan Stanley increased its price target to $175 from $130, citing improved valuation and market outlook. UBS also reiterated a Buy rating with a $275 target, highlighting AI-driven growth and acquisitions. The rally occurred despite broader market declines, with the S&P 500, Dow Jones, and Nasdaq all down slightly.

Accenture (ACN) shares rose 5.2% after Morgan Stanley raised its price target to $175, citing improved valuation and market prospects. The stock has seen significant volatility, with a 4.7% drop six days prior due to macroeconomic pressures. ACN is down 25.4% YTD and 32.8% below its 52-week high.

Wells Fargo downgraded Accenture from Overweight to Equalweight and set a price target of $194. The company's stock is currently at $183.90, up 3.37% over 5 days but down 1.51% year-to-date and 31.46% over a longer period.