ATLANTA (AP) — A federal judge in Atlanta ruled Tuesday that a venture capital firm can continue offering a grant program only to Black women entrepreneurs, saying a lawsuit arguing it illegally excluded other races was not likely to succeed. Senior U.S. Judge Thomas Thrash denied a preliminary injunction that would have blocked the grants by the Atlanta-based Fearless Fund. The judge issued the decision in court after hearing arguments from attorneys and said he planned to issue a written order
The injunction was sought by the American Alliance for Equal Rights, a nonprofit founded by anti-affirmative action activist Edward Blum, the man behind the admissions cases the Supreme Court ruled on in June.“Our nation’s civil rights laws do not permit racial distinctions because some groups are overrepresented in various endeavors, while others are under-represented,” he said in a statement.
The alliance argues in a lawsuit that the fund’s Fearless Strivers Grant Contest, which awards $20,000 to Black women who run businesses, violates a section of the Civil Rights Act of 1866 prohibiting racial discrimination in contracts. It says it has members who are being excluded from the program because of their race and said it’s entitled to relief.
The Fearless Fund runs the grant contest four times a year. To be eligible, a business must be at least 51% owned by a Black woman, among other qualifications. An attorney for the fund, Mylan Denerstein, said the section of the 1866 Civil Rights Act that the plaintiffs were citing was intended to ensure that Black people who were formerly enslaved would have the same rights as whites to enforce contracts after the Civil War.Sudhin Thanawala, The Associated Press
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