On June 4, 2024, Ally Financial became the subject of a lawsuit filed by America First Legal (AFL) on behalf of a former employee, who is a U.S. military veteran with over 20 years of experience in intelligence and counterterrorism. The lawsuit claimed unlawful race- and sex-based discrimination under Title VII of the Civil Rights Act. The former employee alleged that despite his qualifications, Ally Financial placed him in a low-tier position while hiring a less qualified individual for management to fulfill diversity quotas.
A settlement was reached on April 3, 2025. Prior to this, Ally Financial had regularly included sections on diversity, equity, and inclusion (DEI) in their Securities and Exchange Commission (SEC) filings, showcasing demographic statistics. However, just before the settlement, Ally Financial removed all DEI policies and race- and gender-balancing requirements from its SEC filings.
Ally's 2023 filings referenced DEI and other diversity commitments multiple times, but the 2024 filings eliminated these altogether. The recent filing expressed concerns that changes in government policies following the 2024 U.S. election could increase legal and reputational risks and impact the company’s ability to maintain DEI initiatives.
There was previously a notable emphasis on a "Chief Diversity Officer" and core values surrounding diversity in Ally's reports. These mentions were absent in the 2024 filing. Earlier acknowledgments of awards for diversity efforts have also been omitted.
“By stepping back from DEI, Ally is taking a big step towards compliance with vital civil rights laws. We’re happy Ally has dropped racial and gender quotas from its public filings, and we hope it reflects both a genuine commitment by Ally to eliminating discrimination from their own employment practices and a continuing trend against discriminatory DEI in corporate America more broadly,” said Ryan Giannetti of America First Legal.
AFL's advocacy and President Trump's Executive Order on ending illegal discrimination are credited for encouraging Ally and other corporations to reconsider DEI policies.