PayPal Sheds Some Claims in Discrimination Suit Over VC Fund

PayPal Holdings Inc. defeated some claims Friday in a lawsuit alleging it unlawfully excludes Asian Americans and others from a multi-million-dollar program that invests in Black and Latinx-led emerging venture-capital funds.

Nisha Desai, an Asian American woman who founded and runs an early-stage venture capital firm called Andav Capital, alleged that PayPal discriminated against her firm because it was not selected for a program announced in June 2020, committing $530 million to support Black and minority-owned businesses, including a $500 million investment fund. Desai’s firm wasn’t selected in two rounds in October 2020 and May 2021.

PayPal moved for dismissal, ...