Anti-Affirmative Action Activist Sues VC Fund Aiding Black-Owned Businesses

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A group founded by Edward Blum, the conservative activist behind the Supreme Court's decision to reject affirmative action, has sued an Atlanta-based venture capital fund that supports Black women-owned businesses on claims of racial discrimination.

According to Reuters, Blum's nonprofit, American Alliance for Equal Rights, recently filed a lawsuit against the Fearless Fund, alleging that the VC fund is violating the Civil Rights Act of 1866 by only making Black women eligible for its grant competition.

Launched in 2019, the Fearless Fund's Strivers Grant Contest awards $20,000 in grants, digital tools, and mentorship opportunities to Black women who own small businesses. Blum claims the American Alliance for Equal Rights, a group made up of roughly 60 white and Asian members, has been excluded from receiving grants due to race.

The lawsuit is Blum's first since leading another group, Students for Fair Admissions, before the Supreme Court in cases against affirmative action. In June, the conservative-majority court ruled in favor of Blum's group, striking down policies used by colleges and universities across the country that consider race in admissions.

Blum said the Fearless Fund lawsuit is the first of many he seeks to pursue against race-based policies used by private corporations. The conservative activist noted that he plans to model his group's case after his successful SCOTUS litigation.

"The common theme of these organizations is to challenge in the courts the use of racial classifications and preferences in our nation's policies," Blum said.

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