Judge Dismisses Lawsuit Over Black-Owned Business Grants

Latina-led fintech platform Hello Alice has announced the dismissal of lawsuit brought against it by America First Legal, which alleged its grants for Black business amounted to racial discrimination.

What Happened?

In October 2023, Hello Alice found itself at the center of a legal battle when America First Legal, Mitchell Law PLLC, and Ashbrook Byrne Kresge LLC filed a lawsuit alleging racial discrimination.

This was due to the company’s initiative, which, in partnership with Progressive Insurance, provided $25,000 in grants to 10 Black-owned businesses.

However, Hello Alice maintained its stance on equality and inclusion, stating that it was founded on equality and aimed to ensure everyone had equal opportunities.

Hello Alice Wins The Lawsuit

Hello Alice has now announced on its Instagram that the court ruled that the lawsuit is over, and its mission to drive more capital to small businesses continues.

The judge in the case declared, “Plaintiffs fail to allege any injury in fact that would support their standing to seek either retrospective or prospective relief.”

According to a press release, the judge found that the lawsuit did not allege harm that the courts could remedy.

“Thank you all for your love, support, and advocacy. We will never stop fighting for every small business owner making a difference in this country,” Hello Alice’s Instagram post read.

“We are pleased by the resolution of this case. It beats back a meritless lawsuit and makes clear that the federal courts will not hear weak challenges such as these,” said Neal Katyal, lead counsel from Hogan Lovells representing Hello Alice in the case.

The online resources business also recently announced its Series C funding round closed despite being amid the lawsuit.

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