Ally Financial’s legal battle with America First Legal has been dismissed without prejudice, court documents show, after the bank’s public filings show a reduced emphasis on diversity, equity and inclusion.
The parties reached a settlement, AFL said last week, in the case filed on behalf of a former Ally employee who alleged his manager was less qualified than he was but hired due to race- or sex-based quotas.
Details on the settlement did not appear in AFL’s press releases, court filings or statements from Ally.
But Ally’s recent public filings indicate a lesser emphasis on DEI initiatives. Its 2025 annual filing lacks a specific DEI section, where it had existed in the bank’s 2024 annual filing; and its 2025 proxy statement reflects similar changes, compared with its 2024 proxy statement.
The “notable reduction" in the annual filing’s human capital section reflected “a streamlined focus on our engagement strategy,” Ally spokesperson Peter Gilchrist told Banking Dive, adding that changes to the bank’s 10-K “do not signify a reduction in our commitment to our caring and inclusive culture.”
“Our purpose has always been to serve everyone as a financial ally,” Gilchrist wrote. “We embrace viewpoints from employees across all backgrounds, cultures and experiences to help us better serve our diverse customer base, which has enabled us to grow into a leading auto lender and the nation’s largest all-digital bank.”
Changes to Ally’s public filings and statements, though, are in line with tweaks made to language at virtually all of the largest U.S. banks. JPMorgan Chase, Bank of America, Wells Fargo, Truist, Citi, Goldman Sachs, U.S. Bank, Morgan Stanley and Capital One all rewrote sections of their 10-Ks, issued within the past two months, amid a crackdown on DEI from the Trump administration.
Conservative legal groups have taken a stand against DEI policies and initiatives at banking and payments companies. AFL sued fintech Hello Alice in 2023 over its effort with Progressive Insurance to offer grants to Black-owned businesses. A judge dismissed the lawsuit last June.
Another group, the National Legal and Policy Center, is pushing a proposal to eliminate financial incentives to American Express executives who seek diverse suppliers ahead of its April 29 annual shareholder meeting. The credit card company, however, says it no longer offers such compensation.
AFL legal counsel Ryan Giannetti said the firm is “happy Ally has dropped racial and gender quotas from its public filings, and we hope it reflects both a genuine commitment by Ally to eliminating discrimination from their own employment practices and a continuing trend against discriminatory DEI in corporate America more broadly.”
