Good morning, Broadsheet readers! H&M CEO Helena Helmersson stepped down after four years, CEO Linda Yaccarino defends X at a Senate hearing, and Fearless Fund’s Arian Simone says her firm’s lawsuit shouldn’t dissuade others from supporting DEI. Have a thoughtful Thursday.
– Before the court. Yesterday, Arian Simone went to court in Miami. The cofounder of venture capital firm Fearless Fund was there to defend her firm’s grant program for Black women entrepreneurs against a lawsuit brought by anti-affirmative action activist Edward Blum’s organization. The American Alliance for Equal Rights sued the Fearless Fund in August in one of the first such lawsuits filed after the Supreme Court struck down affirmative action.
Fearless Fund is asking a federal appeals court to lift an injunction on its program, which is currently halted for the length of the case. Its lawyers are arguing that grants are considered charitable giving and protected by the First Amendment. The case has become a rallying cause for civil rights activists and believers in diversity and inclusion in venture capital and corporate America. Programs that support underrepresented racial groups are under attack from seemingly every corner, from lawsuits like this one to an Oklahoma law barring DEI programs at publicly-funded universities.
According to the Associated Press, Fearless Fund faced tough questioning yesterday from a mostly conservative panel of judges—suggesting a long road ahead on the firm’s efforts to appeal. The initial lawsuit argued that Fearless Fund’s grant program discriminated against white and Asian women.
Cofounders and CEOs of Fearless Fund Arian Simone, center left, and Ayana Parsons, center right, speak to journalists outside the James Lawrence King Federal Building in Miami, as they leave with their legal team following a hearing on Jan. 31, 2024. Rebecca Blackwell—AP Images I spoke with Simone the day before she appeared in court. As she prepared to defend the legality of her work to support Black women entrepreneurs, she reflected on similar lawsuits that have been filed since the suit against Fearless. “Seeing others get sued—not that you desire to see it, but it means you’re aware that this is definitely bigger than you,” she told me.
Simone says she’s seen “people act out of fear that aren’t even being sued at all.” Yet, she acknowledges, the impact of these lawsuits can be significant. “Eight figures of investments…fell through this past fall,” she said at a news conference yesterday.
Still, Simone hopes that others will continue to back Fearless Fund and other work to support underrepresented communities across industries. “Don’t act from the spirit of fear,” she says. “If you had strong convictions in the post-George Floyd era—you need to keep your conviction.”
Emma Hinchliffe
emma.hinchliffe@fortune.com
@_emmahinchliffe
The Broadsheet is Fortune’s newsletter for and about the world’s most powerful women. Today’s edition was curated by Joseph Abrams. Subscribe here.
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- Too-fast fashion. H&M shares fell 12% on Wednesday after it announced that Helena Helmersson is stepping down as CEO of the struggling fashion retailer. Helmersson, who served as chief sustainability officer before her promotion four years ago, said she didn’t have the energy to continue in the “very demanding” role. She will be replaced by Daniel Ervér. Reuters
- X on exploitation. CEO Linda Yaccarino defended X as "not the platform of choice for children and teens" during a Wednesday Senate hearing on the sexual exploitation of children and distribution of child sexual abuse material on social media. Alongside executives from TikTok, Snap, Meta, and Discord, the CEO stressed the importance of government legislation and industry collaboration to prevent the sharing of such content. Financial Times
- Patent patrol. Federal Trade Commission Chairperson Lina Khan is now taking aim at pharmaceutical companies for patents that the FTC claims restrict competition and the development of cheaper generic medicines. The patents in question—for inhalers and other devices used to deliver medicine to those with asthma or emphysema—often delay or prevent the development of alternatives to drugs used in the devices. Fortune
- DNA decline. 23andMe was one of the hottest startups around; in 2021, founder Anne Wojcicki became an on-paper billionaire when the DNA-testing business went public. But its valuation is now down 98% from its peak and the company could run out of money by 2025 as Wojcicki pursues her vision to turn data into drug development business. Wall Street Journal
- Sharing the court. WNBA star Sabrina Ionescu will face off against NBA All-Star Stephen Curry for the first three-point contest between the two leagues on Feb. 17. Ionescu, who set a WNBA and NBA record for most three-pointers made in last year's contest, is supposed to shoot from the WNBA three-point line but made it clear she's willing to shoot from the NBA mark. The Athletic
MOVERS AND SHAKERS: Emil Capital Partners promoted Sarah Philips to director and Cansu Arslan to vice president. Zappi appointed Nataly Kelly to chief marketing officer and Babita Earle to international managing director. NMI announced Casey Jameson as chief talent officer. The Tory Burch Foundation named The Cru founder Tiffany Dufu its new president.
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