Fund sued over grant program for Black women enlists prominent civil rights attorneys to fight back

Attorneys for an Atlanta-based enterprise capital agency being sued over a grant program for Black ladies vowed Thursday to battle again towards the lawsuit, calling it misguided and frivolous.

At a New York information convention, the attorneys additionally introduced that outstanding civil rights attorneys, together with Ben Crump, would be part of the protection for the Fearless Fund, which was based in 2019 by three Black ladies.

The lawsuit, filed final week in U.S. District Courtroom in Atlanta, was introduced by a nonprofit based by anti-affirmative motion activist Edward Blum, the person behind the Supreme Courtroom instances that led to the dismantling of race-conscious school admissions applications throughout the U.S.

The grievance might be a check case, because the battle over concerns on race shifts to the office. Final month, 13 Republican state attorneys common despatched a letter to 100 of the most important U.S. corporations arguing that the court docket ruling on affirmative action may additionally apply to non-public entities, like employers.

In its lawsuit, American Alliance For Equal Rights argues the fund’s Fearless Strivers Grant Contest, which awards $20,000 to Black ladies who run companies, violates a bit of the Civil Rights Act of 1866 prohibiting racial discrimination in contracts. It claims it has members who’re being excluded from this system due to their race and stated it is entitled to reduction.

The enterprise capital agency was established to deal with limitations that exists in enterprise capital funding for companies led by ladies of coloration. It runs the grant contest 4 occasions a yr. To be eligible, a enterprise should be a minimum of 51% owned by a Black girl, amongst different {qualifications}.

“Right now, the enjoying subject is just not degree — that’s past dispute,” Alphonso David, a civil rights legal professional who serves as president & CEO of The World Black Financial Discussion board, stated on the information convention. “These focusing on Fearless Fund need to propagate a system that privileges some and shuts out most. They need us to fake that inequities don’t exist. They need us to disclaim our historical past.”

Crump stated he was grateful to have the ability to defend the ladies who run the Fund towards “the enemies of equality.”

Blum “thought they’d be the best ones to choose off. Oh, was he unsuitable,” Crump stated.

Blum stated Thursday his group remains to be awaiting a proper reply to the lawsuit from the fund’s attorneys.

“Up to now, all that has been asserted in protection of this racially unique and unlawful program are meaningless cliches,” he stated.

Arian Simone, CEO and co-founder of the Fearless Fund, stated the fund has invested in additional than 40 companies over the previous 4 years. She stated it has deployed over $26.5 million in investments and awarded a whole lot of grants that whole greater than $3 million. It’s backed by J.P. Morgan Chase, Mastercard and different corporations.

The outstanding regulation agency Gibson, Dunn and Crutcher may also participate within the protection, together with the NAACP Authorized Protection Fund and the Nationwide Girls’s Legislation Heart, which have been enlisted as consultants.

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AP Enterprise Author Alexandra Olson contributed to this report.