A divided federal appeals court on Monday blocked a venture capital’s grant program for Black businesswomen and sparred over whether a conservative group could actually bring the lawsuit claiming the fund violated its members’ civil rights.

The split U.S. Court of Appeals for the Eleventh Circuit found that a contest run by the Fearless Foundation likely violates the 1866 Civil Rights Act’s prohibition on racial bias in contracts and granted a preliminary injunction pausing the program.

‘Nothing More Than Flopping’