A federal judge allowed a venture capital firm on Tuesday to continue offering its grant program exclusively to black women.
Senior United States District Judge Thomas Thrash, a Clinton appointee, declined to issue a preliminary injunction blocking the Fearless Fund’s program after listening to arguments, according to the court document.
The American Alliance For Equal Rights (AAER) filed its lawsuit challenging the Atlanta-based firm’s program as “racially-discriminatory” in August.
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Thrash intends to issue a written order before the end of the week, according to the Associated Press. AAER quickly filed a notice Tuesday that it would appeal the decision to the 11th Circuit Court of Appeals.
The Fearless Fund’s case has garnered attention as corporate diversity policies face greater scrutiny following the Supreme Court’s June decision to strike down racial preferences in college admissions.
AAER was founded by Edward Blum, the individual behind the Supreme Court’s affirmative action cases. AAER alleges in its complaint that the company’s Fearless Strivers Grant Contest, which awards $20,000 grants quarterly to small businesses founded by black women, violates the Civil Rights Act of 1866.
During the hearing, the judge said the grants offered by Fearless Fund are “charitable donations,” meaning they are “expressive conduct” protected under the First Amendment, according to the AP.
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Last week, Students for Fair Admissions (SFFA), the organization that brought the Harvard and University of North Carolina lawsuits, sued the military academy West Point Tuesday for its race-based admissions policies.
America First Legal has also filed a number of U.S. Equal Employment Opportunity Commission (EEOC) complaints requesting investigations into allegedly illegal race-based hiring practices at companies including McDonald’s, Mars, Inc., Starbucks, and Anheuser-Busch.
Fearless Fund and Edward Blum did not immediately respond to requests for comment.
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