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Grant program for Black women business owners is discriminatory, appeals court rules

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The ruling against the Fearless Fund is another victory for conservative groups waging legal battles against corporate diversity programs,

Co-founders and CEOs of The Fearless Fund, Arian Simone and Ayana Parsons, speak to journalists outside federal court in Miami in January. A U.S. federal court of appeals panel suspended the venture capital firm's grant program for Black women business owners, ruling that a conservative group is likely to prevail in its lawsuit claiming that the program is the discriminatory.

Fearless Fund CEO and Founder Arian Simone said the ruling was"devastating" for the organizations and the women it has invested in. In a 2-1 ruling, the panel of the U.S. Court of Appeals for the 11th Circuit in Miami found that Blum was likely to prevail in his lawsuit claiming the grant program violates section 1981 of the 1866 Civil Rights Act, which prohibits discrimination on the basis of race when enforcing contracts.

The appeals panel also rejected the Fearless Fund's contention that Blum had no standing because the lawsuit was filed on behalf of three anonymous women who failed to demonstrate that they were"ready and able" to apply for the grant or that they had been injured by not being to do so. Glasgow said he expects one of the lawsuits to land in the conservative-dominated Supreme Court. Even so, he said it's unlikely that any one ruling could settle the legal debate over corporate DEI because of the complexity and wide-ranging programs and policies that fall under the category.

 

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