American Airlines and Qurium Solutions, doing business as Supplier.io, have agreed to settle a federal lawsuit filed by political conservative Edward Blum’s American Alliance for Equal Rights, which alleged that the companies’ supplier diversity practices violated federal anti-discrimination laws.
The lawsuit, filed in February in the Northern District of Texas, accused the Fort Worth-based airline and Supplier.io of breaching Section 1981 of the Civil Rights Act, which protects equal contracting rights regardless of race, and Title VI, because American Airlines receives federal funds, by prioritizing race and ethnicity in their supplier selection processes.
At the time of the lawsuit, American Airlines’ publicly available “Supplier Diversity” webpage stated that to qualify for the company’s Corporate Certified Program, suppliers needed to be at least 51 percent owned, operated and controlled by minority groups, including Black, Hispanic, Asian American, Pacific Islander and Native American individuals, according to a stipulation of dismissal signed by lawyers for the three parties and filed Friday. A similar diversity policy was present on Supplier.io’s website.
American Airlines and Supplier.io denied any wrongdoing or unlawful discrimination and maintained that participation in their programs was not conditioned on the race or ethnicity of the business owners, according to Friday’s filing. The companies also assert that any diversity-related criteria were in line with federal guidelines applicable to government contractors.
American Airlines noted that its supplier diversity initiatives had been developed under federal contracting rules — specifically the Federal Acquisition Regulations and requirements under the Small Business Act — which encourages participation from small and disadvantaged businesses, including those owned by veterans, women and minorities.
To resolve the dispute and avoid further litigation, the companies agreed to make changes to their supplier diversity practices and public communications.
Under the terms of the agreement, American Airlines will not require businesses to be owned by individuals of a particular race or ethnicity to participate in its supplier program. The airline may still ask applicants for demographic data, but only on a voluntary basis, and with explicit language clarifying that such information will not influence eligibility or contract decisions.
The airline will also add a clear disclaimer on its supplier websites for at least four years that states: “Consistent with federal law, American Airlines does not consider race or ethnicity in the award of contracts or in the selection of vendors or suppliers.” And any prior statements to the contrary on its website or in corporate materials, should they exist, will be removed within 120 days.
Supplier.io will implement similar stipulations. The company has agreed to ensure that its portal and services are open to all businesses regardless of size or demographics. Any statements suggesting that only “diverse suppliers” may register will be removed, and demographic data collection will be strictly voluntary and not tied to eligibility, according to the filing.
U.S. District Judge Mark Pittman signed a final judgment Friday dismissing the case with prejudice. The defendants will pay American Alliance’s attorneys’ fees.
The case is American Alliance for Equal Rights v. Qurium Solutions, Inc. (D/B/A Supplier.io) et al, case number 4:25-cv-00125 in the Northern District of Texas.
American Alliance was represented by Thomas R. McCarthy, Cameron T. Norris, Steven C. Begakis and R. Gabriel Anderson of Consovoy McCarthy.
American Airlines was represented by Dee J. Kelly Jr., Russell D. Cawyer and Taylor J. Winn of Kelly Hart & Hallman.
Supplier.io was represented by Kelly E. Kleist of Scheef & Stone.