The verdict was a big win for the Fearless Fund, which has become emblematic of the debate over the issue of diversity policy in corporations.
A preliminary injunction that would have prevented awards from being distributed by the Fearless Fund, which is situated in Atlanta, was rejected by Senior United States Judge Thomas Thrash.
After listening to the arguments presented by the counsel, the judge announced his judgment in open court and said that he hoped to issue a formal order by the end of the week.
The Fearless Fund is a very small participant in the global venture capital market, which is estimated to be worth roughly 200 billion dollars.
Still, the verdict that was handed down on Tuesday was a huge win for the company, which has become emblematic of the battle over corporate diversity policy.
Following the decision made by the United States Supreme Court in June that ended the use of affirmative action in college admissions, the lawsuit filed against it may serve as a test case as the conflict over the use of racial factors in the workplace intensifies.
The American Alliance for Equal Rights, a non-profit organization, requested the injunction. Edward Blum, the anti-affirmative action activist who was the driving force behind the admissions lawsuits the Supreme Court decided on in June, was the founder of the organization.
Blum said that the coalition had every intention of appealing the judgment.
In a statement, he stated, “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 this in reference to the fact that our nation’s civil rights laws prohibit such discrepancies.
After the judgment was handed down, the creators of the fund joined Rev. Al Sharpton in holding a rally outside of the courtroom.
A crowd of supporters was addressed by Arian Simone, the CEO and co-founder of the Fearless Fund. She said that the organization will “continue to run the nation’s first venture capital fund that women of color build for women of color.”
The alliance has filed a complaint against the fund, alleging that its Fearless Strivers Grant Contest violates a provision of the Civil Rights Act of 1866 that prohibits racial discrimination in contracts.
The contest offers a total of $20,000 to Black women who own and operate their enterprises. It claims to have members who are being denied participation in the program due to their race, and it asserts that it is entitled to relief as a result.