Corporate diversity programs could be headed toward the Supreme Court

that got the Supreme Court to overturn affirmative action in higher education last year, and with this decision corporate programs inched closer to a similar fate.Edward Blum's American Alliance for Equal Rights filed a case against Fearless Fund last year, claiming the VC firm's grant program for Black women entrepreneurs is discriminatory because it leaves out other groups.

The court stopped the program from operating while the case proceeds. It ruled that Blum's group "is likely to succeed on the merits" of its claim that the Fearless program violates a Reconstruction-era civil rights law meant to protect formerly enslaved people from discrimination.With this decision, there is now a "circuit split" on these kinds of cases, raising the possibility that they'll wind up at the Supreme Court.

In the Fearless decision, the court ruled that the plaintiffs, also anonymous, did have standing. According to the suit, they are three business owners who would have applied for the Fearless program but aren't Black women.

Programs like the Fearless Fund "are meant to act as a bridge so that entrepreneurs can have a little more time to build those networks so that they can get access to more funding."has reason to be scared. And so do any other firms whose mission is to invest in companies founded by members of underrepresented racial groups.

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