Fearless Fund drops grant program for Black women business owners in lawsuit settlement

abcnews.go.com:

A venture capital firm has closed a grant program for Black women business owners as part of a settlement with a conservative group that had filed a lawsuit alleging the program was discriminatory

NEW YORK — A venture capital firm has closed down a grant contest for Black women business owners as part of a settlement agreement with a conservative group that had filed a lawsuit alleging the program was discriminatory, both sides announced Wednesday.

The settlement came two months after a U.S. federal court of appeals panel ordered the Atlanta-Based Fearless Fund to suspend the Strivers Grant Contest, which provided $20,000 to businesses that are majority owned by Black women. In a 2-1 ruling, the appeals court ruled that the American Alliance for Equal Rights, led by conservative activist Ed Blum, was likely to prevail in its lawsuit claiming that the program illegally discriminated on the basis of race.

The lawsuit against the Fearless Fund, the Atlanta-based firm that has helped grow popular companies like beauty retailer Thirteen Lune and restaurant chain Slutty Vegan, has been closely watched as a bellwether in the growing legal battle waged by conservative groups against corporate diversity programs.

Bolstered by the Supreme Court case that ended affirmative action in college admissions, conservatives have targeted dozens of companies and government institutions and challenged a wide array of programs and policies bolstering diversity, equity and inclusion, known as DEI.

In a statement, Blum, who also brought the case that resulted in the affirmative action ruling, reiterated his view that “race-exclusive programs like the one the Fearless Fund promoted are divisive and illegal."

In a statement, Arian Simone, CEO