PayPal Faces Legal Challenge Over Diversity Program
PayPal is embroiled in a lawsuit filed by Nisha Desai, founder of the venture firm Andav Capital. Desai alleges exclusion from PayPal’s diversity and equity initiative due to her Asian ethnicity. In 2020, PayPal committed $530 million to bolster Black and minority-led businesses, following the Black Lives Matter movement’s momentum. Desai claims her application was sidelined as the program focused on Black and Hispanic enterprises.
- Desai’s firm, Andav Capital, launched in 2018, has invested in companies like Acorns, IFundWomen, and Kubik.
- The lawsuit accuses PayPal of racial bias, highlighting statements that emphasize support for some racial groups over others.
- Desai met with PayPal executives multiple times but was allegedly told the preference was for Black and Hispanic-led firms.
“Funds majority-owned by individuals of other races, including Asian Americans, are not given equal consideration,” Desai asserts.
{New York federal court filings}
The lawsuit further claims that PayPal’s actions violate the Civil Rights Act of 1981 and New York anti-discrimination laws. Consovoy McCarthy, known for challenging race-based programs, represents Desai. They argue that PayPal’s program is racially exclusionary and unlawful.
This case is part of a growing trend where diversity initiatives are being legally scrutinized for perceived racial exclusivity. Other notable lawsuits include those against educational institutions and venture firms accused of similar biases.
