A Black owned Atlanta-based VC firm was hit with an impromptu lawsuit filed by a conservative anti-affirmative action activist and is now taking action to respond to the suit, according to reports.
Fearless Fund, a VC considering itself the first women of color-owned fund made for other women of color told Black Enterprise Thursday that the Texas-based American Alliance for Equal Rights filed the lawsuit following the Supreme Court’s decision to abolish affirmative action.
Fearless Fund launched in 2019 and has since raised millions to help Black women fund their businesses. Led by CEO Arian Simone, the fund is facing the lawsuit filed by Edward Blum, who runs the American Alliance for Equal Rights.
The owner of Creative Investment Research, William Michael Cunningham, has been one of many observers who have addressed the suit since its filing, stating that the American Alliance for Equal Rights has “directed its negative legal stand at the Fearless Fund,” according to Black Enterprise. He further told the publication that his firm’s examination finds that American Alliance is attempting to eradicate all minority and women business programs.
He added his firm’s research finds the organization “stands a good chance of succeeding because of their affirmative action lawsuit that was adjudicated in their favor by the Supreme Court.”
“Black businesses must resist the temptations to retreat and hide their blackness,” Cunningham said. “This lawsuit is an existential threat to the survival of all Black businesses. The situation demands a bold, courageous, and authentic approach to combat this.”
In court documents, the suit contends Fearless Fund’s Fearless Strivers Grant Contest, according to Yahoo Finance report.
The program was designed to give Black women small business owners $20,000 in grants and digital tools to expand their businesses.
Reuters also reported that other lawsuits filed by another group tied to Blum led to the Supreme Court’s ruling.
Blum and the American Alliance for Equal Rights said some of its approximately 60 members, comprised of White and Asian Americans, have not been included in the grant program because of their race, according to Street Insider.
