Progressive insurance, known for its distinctive commercials featuring Flo, is facing a lawsuit accusing them of engaging in “patently unlawful” racism. The lawsuit, filed on behalf of Nathan Roberts, owner of Freedom Truck Dispatch, alleges that Progressive discriminated against non-black small-business owners by offering a $25,000 award exclusively to black-owned businesses for the purchase of a commercial vehicle.
The class-action suit, brought by the organization American First Legal, claims that Progressive partnered with grant administration company Hello Alice to provide the financial award. The lawsuit contends that Progressive’s decision to limit eligibility to black-owned businesses is racially discriminatory, as it excludes white, Asian, Hispanic, and other minority-owned businesses. Furthermore, the lawsuit argues that Progressive relied on studies that highlight the difficulties black entrepreneurs face in accessing capital as justification for their discriminatory policy.
The winners of the grant were announced in a press release, emphasizing Progressive’s support for Black entrepreneurs. Although the application period for the grant has closed, it remains unclear if there will be future rounds of winners. As of now, the landing page containing information about the grant program has been taken down from Progressive’s website.
Roberts, the plaintiff in the lawsuit, asserts that the entire grant scheme is racially discriminatory, as it imposes a requirement of being black in order to apply. Gene Hamilton, a lawyer representing American First Legal, describes Roberts as a hard-working small business owner who was denied the opportunity to receive the $25,000 grant solely because of his skin color. Within the lawsuit, Roberts seeks a court declaration that Progressive’s grants are illegal and requests “nominal” compensation, as well as reimbursement for legal fees.
The lawsuit filed by American First Legal is part of a larger effort to challenge corporations that incorporate racial considerations into various aspects of their operations. Former senior White House advisor Stephen Miller leads the organization. While it is uncertain the total amount sought in compensation, it is clear that the grant program initially launched in 2022, exclusively for Hispanic business owners before shifting to black-owned businesses in subsequent years.
Overall, Progressive’s decision to limit eligibility for their grant program based on race has prompted a legal challenge alleging racial discrimination. The outcome of the lawsuit will determine the legality of their grants and potentially impact future grant programs of this nature.
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