PayPal sued for alleged racial bias against Asian Americans
What's the story
Asian American businesswoman Nisha Desai has sued PayPal, accusing the company of racial bias in its investment program.
According to the suit, the program unfairly restricted funding to Black and Hispanic applicants, causing Desai to suffer financial losses.
The case was filed by Desai and her venture capital firm, Andav Capital, in a Manhattan federal court as part of a broader conservative effort against corporate diversity initiatives, Reuters reported.
Funding pursuit
Desai's pursuit of funding and alleged discrimination
Desai, who was raised by immigrant parents in the Deep South, thought she was a perfect fit for PayPal's program. The program was launched in June 2020 to support Black and minority-owned businesses.
After seeking funding for 1.5 months, Desai said PayPal suddenly ceased communication with her, all the while investing $100 million in 19 Black and Hispanic-led firms.
Legal claims
Desai's legal accusations and demands from PayPal
Desai claims several other Asian American businesswomen were told they were ineligible for funding because of their ethnicity.
"To PayPal and its executives, Asian Americans might be minorities, but they're the wrong kind of minority," the complaint reads.
Desai is accusing PayPal of violating several civil rights laws, including Section 1981 of the Civil Rights Act of 1866 and Title VI of the Civil Rights Act of 1964.
Case details
PayPal's response and Desai's legal representation
She is seeking unspecified damages and an injunction against considering race and ethnicity in PayPal's investment decisions.
Desai filed the lawsuit after a federal appeals court in Manhattan ruled in March that the advocacy group Do No Harm did not have the right to sue Pfizer in a similar case over a fellowship program for Black, Hispanic, and Native American people.
The court said that the group did not name a member who was harmed.