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An anti-affirmative action group has sued McDonald’s over a scholarship program for Hispanic and Latino students a week after the company said it was ending some of its corporate diversity, equity and inclusion practices.
The lawsuit, which alleges the scholarship program unlawfully discriminates against students of other races and ethnicities, was filed in federal court in Tennessee by the American Alliance for Equal Rights, a group helmed by anti-affirmative action activist Edward Blum. Blum is the founder of Students for Fair Admissions, the group that brought an affirmative action case against Harvard University that led to the Supreme Court striking down affirmative action in college admissions in 2023.
The complaint against McDonald’s, which is based in Chicago, alleges the decades-old HACER scholarship program, which the fast food giant says has awarded $33 million in college scholarships to Hispanic and Latino students to date, violates federal law because students who are not Hispanic or Latino are not eligible to apply.
Also named in the lawsuit is Nashville-based International Scholarship and Tuition Services Inc., which administers the scholarship program for McDonald’s.
In a statement, McDonald’s said it was in the process of reviewing the complaint.
“However, McDonald’s announced its evolution on our inclusion work last week, and part of that process will be reviewing programs, in partnership with our franchisees as applicable, to ensure these programs align with our vision moving forward,” the company said.
Last week, the company said it would no longer use specific diversity goals for senior leadership roles and that it planned to retire some other diversity practices.
In announcing the changes, the company cited a “shifting legal landscape” following the 2023 college admissions case. “McDonald’s position and our commitment to inclusion is steadfast,” the company said last week.
The fast food giant is not the only one to roll back diversity, equity and inclusion practices citing the 2023 decision and in the face of ongoing conservative activism against corporate DEI policies. Last week, Facebook and Instagram parent company Meta said it would nix its diversity, equity and inclusion program also citing the 2023 decision. Walmart and John Deere have also pulled back on some corporate DEI initiatives.
In a statement, Blum accused McDonald’s of not going far enough in saying it would sunset some of its corporate diversity practices.
“It is astonishing that after what McDonald’s describes as a comprehensive civil rights audit of its programs and policies, the Hispanic-only HACER scholarship was not flagged for likely being a violation of our nation’s civil rights laws,” Blum said.
Reached by phone, Jeff Martinez of the McDonald’s Hispanic Owner-Operators Association said the group did not have a comment on the lawsuit.
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