Judge dismisses former Trump officials’ case suing Houston fintech platform

A Houston financial technology company is celebrating the dismissal of a lawsuit filed by former Trump administration officials.

Last year, America First Legal sued Houston-based Hello Alice and its partner, Progressive Insurance, alleging that their program to provide 10 $25,000 grants to Black-owned small businesses constitutes racial discrimination. The AFL was founded by former Trump administration adviser Stephen Miller and has a handful of other former White House officials on its board.

The case was dismissed by a federal judge in Ohio, who said “plaintiffs fail to allege any harm in fact that would support their standing to seek retrospective or prospective relief,” according to a press release from Hello Alice.

“This resolution marks a pivotal moment not only for our company but for the broader small business community in the United States,” Elizabeth Gore, co-founder and president of Hello Alice, said in the release. “Facing a labor shortage, high interest rates and inflation, this country needs its small business owners and, in turn, they need the capital and resources that provide programs like Hello Alice. »

Hogan Lovells represented Hello Alice in this matter. Neal Katyal, the lead lawyer, called it a “meritless lawsuit” and the court’s decision speaks to the weakness of the AFL’s case.

“The dismissal of this case is important because the lawsuit would make it more difficult for small businesses to compete in today’s economy,” Katyal said in the statement. “The court has ruled that this lawsuit is now over. The plaintiffs may attempt to appeal, but we are extremely confident in our legal position and are ready and willing to fight not only for Hello Alice, but also for the business community in the broad sense and ready to create an even broader precedent before the Court of Appeal.

In light of this lawsuit, Hello Alice has launched a new initiative to actively support its community of 1.5 million entrepreneurs across the country. Elevate the American Dream, established last year, is a grant program that highlights small businesses living their American dreams. The platform accepts applications from small businesses seeking grants and other business support.

Last month, Hello Alice closed its Series C round for an undisclosed amount. This new funding increased the company’s valuation to $130 million, according to the company. QED Investors, based in Alexandria, Virginia, led the round and investors included Mastercard, Backstage Capital, Guy Fieri, Golden Seeds, Harbert Growth Partners Fund, How Women Invest I, LP, Lovell Limited Partnership, Tyler “Ninja” and Jessica Blevins, and Tamera Mowry and Adam Housley.

Last fall, Gore and his co-founder, Carolyn Rodz, joined the Houston Innovators podcast to discuss the case and the Elevate the American Dream program.