Progressive Insurance is facing a lawsuit over allegations of discriminatory practices, accused of engaging in what has been described as "patently unlawful" racism. The insurance company offered $25,000 grants intended to assist black-owned businesses in purchasing vehicles. However, this initiative explicitly excluded entrepreneurs from white, Asian, Latino, and other backgrounds from applying.
The legal action was initiated by the conservative organization America First Legal (AFL) and other parties on behalf of Nathan Roberts. Roberts is the proprietor of Freedom Truck Dispatch, an Ohio-based business. He was unable to apply for the grant due to his white ethnicity.
Despite inquiries from DailyMail.com, Progressive, known for its distinctive and quirky advertisements, did not respond to requests for comment. The company previously stated that the grants aimed to support black-owned enterprises that historically faced challenges in accessing capital.
Gene Hamilton, a lawyer representing AFL, framed the case as part of a broader effort against major corporations that inject "racial considerations into every aspect of their business operations, employment practices, and more."
Hamilton emphasized that Roberts, who was denied a contract with Progressive that would have provided him with a $25,000 contribution towards a new truck, experienced this denial solely due to his skin color. He characterized Roberts as a diligent "small business owner fighting to create a better life for himself and his family."
Notably, Progressive is headquartered in Ohio. Nathan Roberts, who holds a commercial insurance policy with Progressive, received an email in May detailing grants intended to aid "10 black-owned businesses in purchasing a commercial vehicle."
The lawsuit asserts that Roberts' race renders him ineligible for the grant, resulting in "past and future injury in fact." The practice of excluding non-black applicants is deemed offensive to the principles underlying the American ideal, and it is alleged to violate laws pertaining to racial discrimination in contractual agreements.
This lawsuit, a comprehensive 50-page document, was filed in a US District Court in Ohio during the current week.
Roberts seeks a legal declaration that Progressive's grants are unlawful, along with "nominal" compensation and coverage for his legal expenses. The case names Progressive, a major motor insurer in the US with a workforce of around 55,000 employees, and Hello Alice, an online platform that partnered with Progressive for the grant promotion.