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Federal lawsuit highlights mounting legal backlash against diversity programs

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NASHVILLE, Tenn. (WTVF) — A federal lawsuit is highlighting the mounting legal backlash against diversity programs.

The group, called “The Fearless Fund" provides early-stage funding for businesses that are predominately owned by Black women.

It grants $20,000 to entrepreneurs.

People with the Fearless Fund say the money helps fill a critical need since studies show Black and Brown women receive just a very tiny fraction of venture capital funding.

But a conservative group known as 'the American Alliance for Equal Rights' is suing to stop this program.

This is the same group that was behind the Supreme Court case that ended affirmative action in college admissions.

Their complaint argues that the fearless fund discriminates against people of other races. But the defendants disagree.

"We are learning into this cause to make sure that women of color get the support, the funding and grow their businesses so that they can achieve the American dream," said Co-Founder Ayana Parsons. "Because that's why we're here. We are here to close this wealth gap. We are here to achieve the American dream and continue to serve communities.

A federal appeals court is currently considering the lawsuit. The outcome of the case could affect other charitable organizations that exclusively provide funding for minorities.