A U.S. federal appeals court has suspended the Fearless Fund's grant program for Black women business owners, ruling in favor of a conservative group's lawsuit claiming the program is discriminatory. The decision is part of a broader legal battle against corporate diversity initiatives, with the court finding the program likely violates the 1866 Civil Rights Act. The ruling has significant implications for diversity efforts in business and philanthropy.
The Eleventh Circuit Court of Appeals halted the Fearless Fund's grant program for Black women entrepreneurs, ruling it likely violates the Civil Rights Act of 1866 by using race in making contracts. This decision is a significant win for conservative groups challenging DEI initiatives. The Fearless Fund argued the grants are charitable donations protected by the First Amendment, but the court disagreed, reversing a lower court's decision and imposing a preliminary injunction.
The U.S. Court of Appeals for the 11th Circuit has temporarily blocked the Fearless Fund, an Atlanta-based venture capital firm, from awarding grants exclusively to Black women-owned businesses, citing potential racial discrimination. The decision follows a lawsuit led by affirmative action opponent Edward Blum and has significant implications for race-conscious programs in the private sector. The case is ongoing, with the Fearless Fund evaluating its legal options.
Conservative activists are using Section 1981 of the Civil Rights Act of 1866 to challenge workplace diversity programs and funding for minority-owned businesses, including suing the Fearless Fund, a venture capital fund investing in businesses owned by women of color. This tactic has led to legal battles and changes in diversity fellowship programs at companies like Pfizer, Morrison Foerster, and Perkins Coie. The impact of these lawsuits could potentially reshape how diversity programs and funding are structured in the workplace.
Fearless Fund, an Atlanta-based fund that invests in women founders of color, has responded to a racial discrimination lawsuit filed against it by the American Alliance for Equal Rights (AAER). The fund stated that it is proud of its work and remains committed to providing economic opportunities for women of color. AAER accused Fearless Fund of racial discrimination over a grant program for Black-women-owned small businesses. The outcome of the lawsuit could have implications for venture capital investments and startup support. Fearless Fund recently raised a multi-million-dollar fundraise from Costco and Mastercard.
