America First Legal Drops Lawsuit Against Ally Financial
America First Legal (AFL) has decided to drop its lawsuit against Ally Financial following the financial giant’s notable removal of diversity-focused content from its public filings. This development was disclosed in court documents on April 15, 2025, presenting a significant moment as business and legal communities observe closely.
Ally Financial’s litigation with AFL has been dismissed without prejudice, indicating that the case could potentially be reopened in the future if necessary. This decision came after AFL acknowledged the absence of specific references to diversity, equity, and inclusion (DEI) practices in the company’s latest public filings. A spokesperson from AFL confirmed that the lawsuit, initially filed on behalf of a former Ally employee who alleged racial or gender-based hiring quotas resulted in discriminatory practices, has reached a settlement.
Settlement Details
Despite the settlement, neither law firm nor Ally Financial has provided details about the agreement in public statements or legal documents. The lawsuit’s withdrawal was influenced by Ally’s strategic move to reduce its emphasis on DEI priorities in official reports. For instance, Ally’s 2025 annual filing lacks a dedicated DEI section that was present in the 2024 document. Similarly, the changes are evident in the company’s 2025 proxy statement, when compared to the previous year’s edition.
Changes Within Ally Financial
Peter Gilchrist, a spokesperson for Ally Financial, clarified that the revisions in the human capital segment of their annual filing were made to streamline the company’s focus on its engagement strategy. He reiterated that no reduction in the company’s commitment to its inclusive culture should be inferred from these changes.
“Our purpose has always been to serve everyone as a financial ally,” Gilchrist affirmed, highlighting the company’s commitment to embracing a variety of perspectives from employees of diverse backgrounds to better cater to its wide-ranging customer base.
Industry-Wide Shifts
Ally Financial is not alone in its adjustment of diversity language in public filings. Many major U.S. banks, including JPMorgan Chase, Bank of America, Wells Fargo, Truist, Citi, Goldman Sachs, U.S. Bank, Morgan Stanley, and Capital One, have similarly revised their DEI references over the last few months. These changes come amid pressure from the Trump administration to scrutinize and possibly dial back DEI initiatives across corporations.
Conservative Pushback
Conservative legal organizations have been vocal critics of DEI initiatives within banking and payment companies. For instance, AFL had previously filed a lawsuit against fintech company Hello Alice for its collaboration with Progressive Insurance to provide grants to Black-owned businesses, which was dismissed in June. Another conservative group, the National Legal and Policy Center, is proposing the removal of financial incentives tied to diverse supplier initiatives at American Express, a move that the corporation states it has already ceased.
Ryan Giannetti, legal counsel for AFL, expressed satisfaction with the removal of racial and gender quotas from Ally’s filings. “We hope it reflects a genuine commitment by Ally to eliminating discrimination from their employment practices and signals a broader trend against discriminatory DEI in corporate America,” Giannetti concluded.
Stay informed about these developments in corporate DEI strategies by subscribing to hrtechtrend.com. These transitions mark a potentially significant shift in how companies integrate and prioritize diversity within their business models during changing political and legal climates.
