A federal appeals court has ruled that the Fearless Fund grant program for Black women business owners is discriminatory.
The judges ruled that the Fearless Fund’s Fearless Strivers Grant Contest is ‘substantially likely to violate’ the provisions of Title 42 of the US Code, which ensures equal rights under the law and prohibits using race when awarding and enforcing contracts.
The case against the Atlanta-based venture capital fund began last year with a lawsuit by the American Alliance for Equal Rights. The lawsuit, led by Edward Blum, who is known for challenging affirmative action in college admissions, alleged that the fund, which specifically caters to Black women, is racially discriminatory.
Monday’s 2-1 decision was a reversal from last year’s ruling by a federal judge, which ruled that the contest should be able to continue because, in their opinion, the lawsuit was expected to fail. But, since October, this program has been suspended after a different panel of the federal appeals court swiftly granted Blum’s request for an emergency injunction while he challenged the federal judge’s original order.”
The court’s decision marks the latest victory in the war the GOP is waging against DEI and diversity programs. As ESSENCE has previously reported, this lawsuit is emblematic of a larger issue in this country where seemingly politically motivated plaintiffs are challenging organizations that counter racial bias and advance equity, in this case, starting with underrepresented groups like Black women in the venture capital space.
To read more about the ruling click HERE.
The case against the Fearless Fund was brought last year by the American American Alliance for Equal Rights, a group led by Edward Blum, the conservative activist behind the Supreme Court case that ended affirmative action in college admissions. The full report from the AP can be found HERE.
Another detailed report from TIME about the the venture-capital firm run by Black women can he found HERE.
