PayPal faces lawsuit alleging racial bias in investment program

Investing.com -- PayPal (NASDAQ:PYPL ) has become the target of a lawsuit by an Asian American businesswoman, Nisha Desai, and her New York-based venture capital firm, Andav Capital. The lawsuit alleges racial bias in the company's investment program, claiming it has cost Desai and her firm millions of dollars.

The issue at the center of the lawsuit is a $535 million investment initiative by PayPal, which was announced in June 2020. The program was designed to support Black and minority-owned businesses in an effort to address economic inequality.

Desai, who was born and raised in the Deep South by immigrant parents, believed she was a suitable candidate for PayPal's investment program. However, after spending a month and a half seeking funding, PayPal ceased communication with her. This occurred while the company invested $100 million in 19 venture capital firms led by Black and Hispanic individuals.

The lawsuit also alleges that PayPal informed several other businesswomen of Asian descent that they were not eligible for funding. The complaint, filed in Manhattan federal court, states, "To PayPal and its executives, Asian Americans might be minorities, but they're the wrong kind of minority."

This legal action against PayPal is part of a broader push by some conservatives to scale back diversity, equity, and inclusion initiatives in corporate America.

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Source: Investing.com