Progressive Insurance Faces Class-Action Lawsuit Over Alleged Racial Discrimination
Grant Program Favoring Black-Owned Businesses Sparks Legal Battle; Plaintiffs Seek Injunction and Damages
The marvel of evolution is not just around us; it's within us, a testament to life's complexity.
Daniel Schmachtenberger
CLEVELAND, OHIO — Progressive Preferred Insurance Company, along with Progressive Casualty Insurance Company and Circular Board LLC, is facing a class-action lawsuit filed in the United States District Court for the Northern District of Ohio. The plaintiffs, Nathan Roberts and Freedom Truck Dispatch LLC, allege that the companies engaged in racial discrimination by offering a $25,000 grant exclusively to Black-owned small businesses.
The grant, aimed at supporting the purchase of commercial vehicles, is part of Progressive's "Driving Small Business Forward" program. According to the complaint, Progressive does not permit non-Black-owned small businesses to apply for the grant, a practice the plaintiffs argue is patently unlawful.
The lawsuit, filed on August 16, 2023, seeks to enjoin Progressive from continuing these racially discriminatory practices and recover classwide damages on behalf of everyone who has suffered unlawful racial discrimination on account of this program.
Progressive Preferred Insurance Company provides commercial insurance to commercial trucking and delivery companies. The grant was offered through defendant Progressive Casualty Insurance Company, although the email was sent by Progressive Preferred Insurance Company.
The plaintiffs claim that Progressive's decision to make only Black-owned businesses eligible for these grants violates 42 U.S.C. § 1981, a federal civil rights law that prohibits racial discrimination in the making and enforcement of contracts.
Hello Alice, an online resource platform operated by defendant Circular Board LLC, is also named in the lawsuit for allegedly conspiring and partnering with Progressive in administering these racially discriminatory grants.
Nathan Roberts, a citizen of Ohio and the sole owner of Freedom Truck Dispatch LLC, began filling out the application for the grant but stopped when he realized that the grants were only available to Black-owned businesses. Roberts, who is white, claims that he was barred from applying for the grant and is suffering past and future injury due to this racial discrimination.
The class-action suit includes all individuals who were or are "able and ready" to apply to Progressive's grant program and have been or would be subjected to racial discrimination on account of the defendant's behavior.
The plaintiffs are seeking certification of the class, a declaration that Progressive is violating federal law, an injunction against racial discrimination, and awarding of nominal, compensatory, and punitive damages against each of the defendants.
The case highlights the ongoing debate over affirmative action and race-based initiatives aimed at addressing historical inequities. While some argue that such programs are necessary to level the playing field, others contend that they may lead to reverse discrimination.
Progressive and the other defendants have not yet publicly responded to the allegations.
