In another potential setback for corporate programs designed to enhance diversity, equity, and inclusion (DEI), a federal appeals court has told a lower court to halt a contest open only to Black women, pending a decision on whether it passes constitutional muster. A split three-judge panel of the U.S. Court of Appeals for the Eleventh Circuit made the ruling June 3, 2024, in American Alliance for Equal Rights v. Fearless Fund Management.
The American Alliance for Equal Rights, a public interest group helmed by affirmative action opponent Edward Blum, brought the lawsuit to challenge the Fearless Strivers Grant Contest. Venture capital firm Fearless Fund Management sponsored the contest, which awards money and mentorship to businesses owned by Black women. The Eleventh Circuit panel majority concluded that a preliminary injunction pausing the contest is appropriate because the contest is substantially likely to be found to violate 42 U.S.C. Section 1981, is substantially unlikely to enjoy First Amendment protection, and inflicts irreparable injury on the plaintiffs if not enjoined.
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