Judge refuses to immediately block Atlanta firm's grant program for Black women entrepreneurs

The Rev. Al Sharpton speaks outside the Richard B. Russell federal courthouse in Atlanta, on Tuesday, Sept. 26, 2023, in support of a grant program for Black women entrepreneurs. A judge ruled Tuesday that the program can continue, saying a lawsuit arguing it illegally excluded other races was not likely to succeed. (AP Photo/Curlan Campbell)

A federal judge in Atlanta ruled Tuesday that a venture capital firm can continue offering a grant program only to Black women entrepreneurs, saying a lawsuit arguing it illegally excluded other races was not likely to succeed.

Senior U.S. Judge Thomas Thrash denied a preliminary injunction that would have blocked the grants by the Atlanta-based Fearless Fund. The judge issued the decision in court after hearing arguments from attorneys and said he planned to issue a written order by the end of the week.

The Fearless Fund is a tiny player in the approximately $200 billion global venture capital market, but Tuesday’s ruling was a significant victory for the firm, which has become symbolic of the fight over corporate diversity policies. The lawsuit against it could be a test case, as the battle over considerations on race shifts to the workplace following the U.S. Supreme Court’s June ruling ending affirmative action in college admissions.