America First Legal (AFL) reached a settlement with Ally Financial after a lawsuit against the company, alleging unlawful race- and sex-based discrimination, was filed on June 4, 2024. The case involved a former employee and U.S. military veteran who claimed that Ally Financial's hiring practices were discriminatory and favored less qualified individuals for management positions because they met diversity quotas.
The lawsuit questioned Ally Financial's dedication to diversity, equity, and inclusion (DEI) initiatives, which were previously highlighted in the company's Securities and Exchange Commission (SEC) filings. However, following the lawsuit and shortly before the settlement, Ally Financial removed all mentions of DEI policies and diversity quotas from its SEC filings.
In 2023, Ally Financial's SEC filings contained numerous references to DEI, but by 2024, these mentions were notably absent. This change coincides with warnings in Ally's 2024 filings about the potential risks posed by changes in government policies following the 2024 U.S. election. The filings also noted potential impacts on the company's ability to continue its DEI and sustainability initiatives.
A Chief Diversity Officer and several awards related to DEI efforts are no longer mentioned in the current filings. Additionally, the company's core values have shifted, with previous commitments to diversity and inclusion no longer explicitly defined.
Ryan Giannetti, America First Legal Counsel, stated, “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.”
AFL credited its efforts, alongside former President Trump’s Executive Order to end illegal discrimination and promote merit-based opportunities, for influencing Ally Financial's decision. AFL remains committed to challenging DEI policies and holding companies accountable.