Equity Firm Calls AT&T’s Racial Bias ‘Prime Example’ of Section 1981 Violation

The case in which private equity firm Legacy Equity Advisors accuses AT&T of not viewing it as a serious or qualified buyer for AT&T’s divested assets because of its African American ownership and management “is a prime example of racial discrimination in contracting” that Section 1981 of the Civil Rights Act “was intended to eradicate,” said Legacy’s opposition Monday (docket 3:23-cv-00979) in U.S. District Court for Northern Texas in Dallas to AT&T’s July 17 motion to dismiss (see 2307180002). In trying to “detract” from Legacy’s allegations, AT&T’s motion “makes a series of arguments contrary to” 5th Circuit precedent, said the opposition. Legacy alleges AT&T shut it out from bidding on Cricket Wireless, “only further evincing AT&T’s discriminatory intent,” it said. “The refusal to allow a bid, if on account of race, is a violation of Section 1981,” it said. AT&T contends Legacy’s complaint is time-barred, it said. But a court “may not dismiss a complaint based on the statute of limitations, unless it is evident from the plaintiff's pleadings that the action is time-barred, and the pleadings fail to raise some basis for tolling,” it said. Here, the complaint isn’t time-barred based on the allegations that Legacy didn’t know, and didn’t have reason to know, of AT&T’s “discriminatory motive” until March 2022, it said.