SERVICENOW INC
NOW
Information Technology
3
exclusion reasons
1 theme
This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
ServiceNow is under DOJ investigation (disclosed July 2024) for improper hiring of former Army CIO Raj Iyer as global head of public sector, three months after the Army awarded a $432M five-year contract to Carahsoft for ServiceNow licensing in December 2022. An internal investigation found company policy was violated during procurement. Both Iyer and President/COO CJ Desai resigned. The DOJ, DoD Inspector General, and Army Suspension and Debarment Office all launched investigations. The case exemplifies revolving-door corruption between government procurement officials and technology contractors.
DOJ launched an in-depth antitrust review (June 2025) of ServiceNow's $2.85B acquisition of Moveworks, an enterprise AI company, issuing a second request for information to both companies. Concern centered on overlapping automation offerings for internal IT tasks and potential foreclosure -- whether ServiceNow would restrict Moveworks' availability on competing service management platforms. Deal ultimately cleared and closed Dec 2025 after regulatory conditions were met.
ServiceNow agreed to a $925,000 settlement in May 2024 to resolve a lawsuit alleging the company breached its fiduciary duties by retaining underperforming American Century target-date funds in its 401(k) plan.
Research Sources
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Related Exclusions
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A digest of changes to our exclusion list — new additions, removals, and the evidence behind them. We review the list continuously as new evidence surfaces.
Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
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