Venture fund founder sues PayPal alleging racial discrimination

Core Viewpoint - PayPal is facing a lawsuit from Nisha Desai, founder of Andav Capital, who alleges racial discrimination in the company's diversity and equity program, claiming she was excluded due to her Asian ethnicity [1][7]. Group 1: Lawsuit Details - The lawsuit was filed in a New York federal court, where Desai claims that PayPal's program is racially exclusionary, focusing primarily on Black and Hispanic-led businesses [4][7]. - Desai asserts that she applied for PayPal's $530 million commitment aimed at supporting minority-led businesses but was overlooked because the program prioritized Black and Hispanic firms [2][5]. - The suit alleges that PayPal's executives explicitly stated a preference for Black and Hispanic-led firms over other races, including Asian Americans [5][6]. Group 2: Financial Impact - Desai claims that her exclusion from the investment program resulted in significant financial losses for her firm, which she estimates to be "vital capital worth millions of dollars" [6]. - The lawsuit highlights that recipients of PayPal's funding were able to leverage those awards for additional investments and resources, while rejected funds like Desai's suffered from negative perceptions [6]. Group 3: Legal Representation and Context - Desai is represented by Consovoy McCarthy, a legal firm known for challenging race-based programs, including previous cases against Pfizer and educational institutions [8]. - The lawsuit is part of a broader trend where individuals and organizations are contesting diversity initiatives that they claim discriminate against non-Black and non-Hispanic groups [10].