Benjamin Crump Leads Appeal For Black-Led Grant Program Caught Up In A Civil Rights Controversy

The American Alliance for Equal Rights sued the Fearless Fund in arguing its grants reserved for Black women violate civil rights laws.

Legal representatives for a Black women-led Atlanta grant program filed an appeal on Dec. 6 countering a racial discrimination lawsuit. The American Alliance for Equal Rights (AAER) previously sued the Fearless Fund in federal court, arguing its venture capital grants reserved solely for Black women violate civil rights laws.

In the appeal led by renowned civil rights lawyer Benjamin Crump, the Fearless Fund founders contend they acted lawfully to address systemic discrimination.

“The Alliance seeks to halt a program designed to bridge glaring funding disparities facing Black women entrepreneurs due to historical inequities,” the appeal states, according to 11 Alive.

The news outlet reported a statement released by the Fearless Fund to defend its actions: “Women of color-owned businesses are a vital, growing sector to our economy yet received less than one percent of venture capital funding,” said Arian Simone, CEO and founding partner of Fearless Fund. “Our legal team filed a brief in support of our First Amendment right to voice our view that these women of color-owned businesses need to be supported and that we are aligned with them through the Fearless Foundation’s Strivers Grant Program. We will fight fearlessly to protect these businesses, the dreams of their founders, and our right to express this viewpoint against any and all legal challenges.”

The Fearless Fund aims to counter racial and gender biases that limit venture capital for women of color-owned startups. However, the AAER lawsuit reflects a broader national debate over affirmative action policies. Fearless Fund general partners Simone and Ayana Parsons created the grant and mentorship program after struggling to access capital for their own ventures. “As Black women, we faced more obstacles to financing our dreams than other demographics,” Simone explained.

The appeal cites 2019 Census Bureau data showing 12.7% of women-owned firms were Black or African American-owned, demonstrating a need to nurture this demographic of entrepreneurs. It argues the Fearless Fund’s targeted approach does not violate First Amendment or federal civil rights protections. The legal document makes a moral case for boosting opportunities for Black women entrepreneurs facing systemic barriers.

“Our grants aim to empower innovators who might lack networks and resources to transform their ideas into thriving businesses,” Parsons said. “We welcome the chance to defend this mission in court.”

The pending litigation has already disrupted grants for 2023, forcing the Fund to revise official rules. Oral arguments are scheduled to commence on Jan. 31, 2024.