After facing a lawsuit from the American Alliance for Equal Rights, the Atlanta-based Fearless Fund has agreed to discontinue its grant program designed exclusively for Black women entrepreneurs.
This legal resolution highlights the broader impact of last year’s U.S. Supreme Court ruling to end affirmative action in higher education. The ruling has also led many companies, particularly in the financial sector, to reassess their diversity, equity, and inclusion (DEI) initiatives.
The lawsuit, initiated in August 2023 by conservative activist Edward Blum's American Alliance for Equal Rights, targeted the Fearless Foundation, an arm of the Fearless Fund, which invests in businesses led by women of color. Despite the decision to discontinue its Strivers Grant Contest, both Fearless Fund CEO Arian Simone and the organization’s legal team have emphasized that the settlement opens new opportunities for expanding their funding programs.
“The resolution of this case is a positive outcome for the Fearless Fund,” Alphonso David, CEO of the Global Black Economic Forum and co-counsel for the Fearless Fund, said in a statement. “The agreement is very narrow and does not restrict or impact any other investment or charitable activity going forward. The Fearless Fund can now continue its work toward expanding economic opportunity.”