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PayPal is facing a lawsuit from the founder of venture firm Andav Capital, Nisha Desai, who claims she was excluded from the payment giant’s diversity and equity program due to her race. The suit alleges that PayPal prioritized financial commitments to Black and minority-led businesses over others because of their ethnicity.
According to court documents filed in New York federal court, Desai applied for the program but was rejected without any clear explanation or justification. She claims she met with PayPal executives and its venture arm, PayPal Ventures, on multiple occasions, only to be told that her firm did not align with the company’s goals or values.
Desai’s legal team, Consovoy McCarthy, is accusing PayPal of violating the Civil Rights Act of 1964 and New York State and city laws that prohibit racial discrimination. The suit also claims that other funds like Andav Capital were unfairly excluded from participating in the program due to their race, resulting in lost opportunities and financial harm.
This lawsuit joins a growing trend of similar cases targeting diversity initiatives that prioritize funding for underrepresented groups. Edward Blum, a prominent anti-affirmative action advocate, launched the American Alliance for Equal Rights (AAER) in 2020, which has since filed multiple lawsuits against organizations accused of racial discrimination.
Desai’s suit aims to seek damages and an injunction prohibiting PayPal from continuing its allegedly discriminatory practices. The case is expected to have far-reaching implications for the venture capital industry and the broader tech sector.
In related news, Consovoy McCarthy, Desai’s legal representation, has a history of taking on cases against race-based programs. The firm has previously sued organizations such as Harvard University and the University of North Carolina over affirmative action policies, arguing that these initiatives discriminate against white and Asian American individuals.
The lawsuit is a significant blow to PayPal’s diversity efforts, which have been criticized for being overly focused on Black and minority-led businesses.
Source: techcrunch.com
