01:35 PM EST, 01/03/2025 (MT Newswires) -- PayPal ( PYPL ) is facing a federal lawsuit filed by Andav Capital and its Chief Executive Nisha Desai seeking to bar the company from knowing or considering race or ethnicity in any way for its investment program.

PayPal's ( PYPL ) race and ethnicity-based investment program allegedly not only violate federal laws, but alo New York state and city laws by not giving equal consideration to funds that are not "Black and Latinx-led," according to the lawsuit filed Thursday in the US District Court for the Southern District of New York.

"Funds majority-owned by individuals of other races, including Asian Americans, are not given equal consideration," according to the complaint.

The plaintiffs are also seeking compensatory, punitive and nominal damages along with reasonable costs and expenses for the lawsuit.

Paypal ( PYPL ) declined to comment on pending litigation, while Andav Capital did not immediately respond to MT Newswires.

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