Lawsuit Filed Against PayPal Over Allegations of Racial Discrimination in Investment Program

PayPal (NASDAQ:PYPL) has become the target of a lawsuit filed by Asian American businesswoman Nisha Desai and New York-based venture capital firm Andav Capital. The lawsuit alleges that the company engaged in racial discrimination within its investment program, claiming this has cost Desai and her firm millions of dollars.

At the center of the lawsuit is PayPal's $535 million investment initiative announced in June 2020. The program was designed to support Black and minority-owned businesses in an effort to address economic inequality.

Born and raised in the Southern United States by immigrant parents, Desai believed she was a suitable candidate for PayPal's investment program. However, after a month and a half of seeking funding, PayPal cut off communication with her. This occurred while the company was investing $100 million in 19 venture capital firms led by Black and Hispanic individuals.

The lawsuit also claims that PayPal informed several other Asian American businesswomen that they were not eligible for funding. The complaint, filed in Manhattan federal court, states, "For PayPal and its executives, Asian Americans may be a minority, but they are the wrong kind of minority."

This lawsuit against PayPal is part of a broader effort by some conservatives to roll back diversity, equity, and inclusion initiatives in corporate America.