Desai et al v. PayPal Holdings, Inc. et al | Advancing DEI Initiative

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GLOSSARY

The definitions in our glossary are primarily sourced from Nolo’s Plain-English Law Dictionary and Cornell Law School’s Legal Information Institute. We have made slight modifications where needed for brevity and to better tailor the definitions to the specific needs of users of this website. For more detailed explanations of the terms, users are encouraged to review the definitions on these websites or conduct their own independent research.

A written request made after a trial court’s final ruling, asking another court to review the trial court's decisions. Appellate courts typically decide whether a legal mistake was made and whether the mistake changed the outcome of the case.

An out-of-court procedure for resolving disputes in which one or more people, “arbitrator(s),” hear evidence and make a decision. It's like a trial in some ways, but typically proceeds more quickly and with less formality.

A lawsuit in which a large number of people with similar legal claims join together (the class) to sue. In this context, it likely refers to cases in which a group of people claim they have suffered discrimination at the hands of an organization.

A document filed in court that starts a lawsuit. In some states and in some types of legal actions, the complaint is called a petition.

When an employee quits a job because working conditions are so intolerable that a reasonable person in the same situation would quit.

the money awarded to one party because of an injury or loss caused by another party.

The person or entity against whom a civil case is filed.

Working conditions that are created when unwelcome, discriminatory conduct that is so severe or pervasive that it alters the conditions of a person's employment and creates an abusive working environment.

A court order requiring a person to do or stop doing a specific action.

Harm done to a person or organization by the acts or omissions of another. Injury may be physical or may involve damage to reputation, loss of a legal right, or breach of a contract.

An appeal that occurs before the trial court's final ruling on an entire case.

Any party to a lawsuit. This might include a plaintiff, defendant, petitioner, respondent, cross-complainant, or cross-defendant, but not a witness or attorney.

The process of bringing and pursuing (litigating) a lawsuit.

A formal request, either written or oral, that a judge enter a particular order or ruling in a lawsuit.

A motion asking the judge to throw out one or more claims or an entire lawsuit.

These phrases refer to a case whose decision rests upon the law as it applied to the particular evidence and facts presented. This is in opposition to cases whose decisions rest upon procedural grounds (e.g. not filing a timely complaint).

The person, corporation, or other legal entity that initiates a lawsuit seeking damages, enforcement of a contract, or a court determination of rights. In certain states and for some types of lawsuits, the term petitioner is used instead.

Any legal document filed in a lawsuit, including the complaint, answer, and motion(s). The pleading stage gives notice to both parties of the intention of the opposing party regarding the lawsuit.

An opinion of a federal or state court of appeals establishing a legal principle or rule that must be followed by lower courts when faced with similar legal issues.

A court order early in a lawsuit that prohibits the parties from taking a disputed action until the court can decide the merits of the case.

A document that public companies must provide their shareholders prior to a shareholder meeting. The document summarizes proposals submitted to shareholders for a vote.

Punishment of an employee by an employer for engaging in legally protected activity like making a complaint of harassment or participating in workplace investigations. It can include any negative job action, such as demotion, discipline, or firing.

A legal rule under which the federal and state governments are immune from being sued in their own courts without their consent. When it applies, it's an impenetrable defense to a claim for damages.

A person's right to sue and have a court rule on their claims. To invoke a federal court's jurisdiction and have the court exercise its remedial powers on their behalf, a person must have standing.

A court order that suspends or stops certain proceedings.

A final decision by a judge, upon a party's motion, that resolves a lawsuit before there is a trial.

CASE NAME

Desai et al v. PayPal Holdings, Inc. et al

Overview

Plaintiffs—an Asian American woman and her venture capital firm—challenge an investment program operated by PayPal, arguing that it unlawfully discriminates on the basis of race by only investing in "Black and Latinx-led"` emerging venture capital funds.

Details

On April 16, 2025, Defendant asked the court to the case, asserting that Plaintiffs lacked because they never applied for funding from the program and were therefore not harmed by the selection criteria they are challenging. Defendant also claimed that the lawsuit was filed too late, beyond the deadline of 3 years, and that Plaintiffs failed to bring valid claims.

On May 7, 2025, Plaintiffs filed an amended and reasserted that they sought funding from Defendant and suffered harm from the program's allegedly discriminatory selection criteria.

On May 28, 2025, Defendant filed a motion to dismiss Plaintiffs' amended complaint arguing once more that some of the claims were filed too late. Defendant also argued that Plaintiffs' added claims under the Equal Credit Opportunity Act (ECOA) and the New York State Human Rights Law (NYSHRL) should be dismissed because they applied for funding and not credit from PayPal. Lastly, Defendant argued that claims made under the New York City Human Rights Law (NYCHRL) should be dismissed because the fund investments were "customized" and "selective" assessments, not public accommodations.

Court

U.S. District Court, Southern District of New York

Status

Filed January 02, 2025 | Ongoing

Relevant Law

Title VI Section 1981 State law Other

New York State Human Rights Law (NYSHRL)

New York City Human Rights Law (NYCHRL)

Equal Credit Opportunity Act (ECOA)

Topic

Targeted programs