*A federal appeals court has blocked a venture capital fund from processing grant applications for businesses led by Black women.
The stunning decision is part of an anti-affirmative action case led by a conservative organization that believes the grant program discriminates against other racial groups.
We reported previously that the group was founded by the man who successfully led the fight to end affirmative action in higher education. He filed a lawsuit against the Atlanta-based Fearless Fund, a venture capital firm that invests in Black female entrepreneurs.
Edward Blum, the founder of Students for Fair Admissions, the group behind the anti-affirmative action case that reached the Supreme Court, is suing the fund, ABC News reports. The organization argues that the fund is “operating a racially discriminatory program that blatantly violates Section 1981’s guarantee of race neutrality.”
Per the Fearless Fund website, the organization describes itself as “built by women of color for women of color.”
“The program being challenged is racially exclusive, thus violating our nation’s civil rights laws,” Blum previously told TechCrunch. “It is to be hoped that other programs like this one end these practices and offer the benefits to all small businesses regardless of the owner’s race.”
Last week, a federal judge in Atlanta disagreed, and denied a preliminary injunction that would block the grants, the Associated Press reports.
On Saturday, the Atlanta-based 11th U.S. Circuit Court of Appeals on a 2-1 vote blocked Fearless Fund from moving forward with a program, Reuters reports.
Blum said in a statement that his group is “gratified that the 11th Circuit has recognized the likelihood that the Fearless Strivers Grant Contest is illegal.”
Meanwhile, Jason Schwartz, a lawyer for Fearless Fund, said, “We remain committed to defending our clients’ meaningful work.”
READ MORE: Judge Refuses to Block Fearless Fund Grant Program for Black Women
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