When NASCAR was hit with $500M lawsuit for alleged racial discrimination

In 2004, NASCAR launched its Drive for Diversity program, aiming to help people from diverse backgrounds find employment opportunities in NASCAR. However, 12 years later, a Georgia man filed a $500 million lawsuit against NASCAR on grounds of alleged racial discrimination.

According to claims made in a 2016 court filing by Terrance Cox III, owner of Diversity Motorsports Racing, a North Carolina-based outfit, NASCAR and International Speedway Corporation made no effort to urge corporate sponsors to fund African American drivers or teams.

Toni Breidinger, Bubba Wallace, and Regina Servant at NASCAR's Drive for Diversity Award ceremony at the NASCAR Hall of Fame on October 7, 2021, in Charlotte, North Carolina. (Source: Getty)

The complaint also stated NASCAR had encouraged the sponsors to work with team owners like Dale Earnhardt Jr. and Tony Stewart instead. The lawsuit demanded a compensation of $75 million in addition to $425 million in punitive damages from NASCAR.

A NASCAR statement at the time said, (via ESPN):

"NASCAR embraces all individuals interested and involved in our sport, whether as partners, fans, competitors or employees, and there is no merit to this lawsuit. NASCAR has a long-standing history of investing in diversity efforts including the NASCAR Drive for Diversity, NASCAR Diversity Internship and NASCAR Diversity Pit Crew Development programs. We stand behind our actions, and will not let a publicity-seeking legal action deter us from our mission.

"NASCAR not only will defend our organization against these meritless allegations, but we will be asserting our own claims against Mr. Cox for his defamatory actions."

At the time, NASCAR's sole African American driver was Bubba Wallace, who was racing for Roush Fenway Racing in the Xfinity Series. JTG Daugherty Racing co-owner Brad Daugherty and Obaika Racing owner Victor Obaika were the two African American team owners in the sport.

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When conservative American group lodged complaint against NASCAR to the EEOC

Last year in November, a conservative American group called America First Legal sued NASCAR and several other companies like Major League Baseball, McDonald’s, Starbucks, and Morgan Stanley, to the Equal Employment Opportunity Commission (EEOC).

As per a 2023 report by Autoweek, AFL demanded a formal investigation against NASCAR and Rev Racing for "illegal discrimination against white male Americans." The complaint claimed that some of the organizations' programs violated Title VII of the Civil Rights Act of 1964.

Steve Phelps, President of NASCAR, said at the time,

"I’m proud of the work that we’ve done in the areas of diversity inclusion to broaden our sport. We are going to continue efforts to have the entire country, the entire world, come to our facilities, watch it on television because it’s about a love for racing. I think racing is a great opportunity for people to come together."

He added,

"We are going to continue to make sure that we are broadening our fan base and broadening our fan base across every segment of this population, young, old, black, white, male, female, all of it, because that’s how we’re going to grow," Phelps added.

As of today, African American drivers like Bubba Wallace and Rajah Caruth are regular faces across NASCAR's different series. NASCAR also features female drivers like Hailie Deegan, Toni Breidinger, and Natalie Decker and non-American speedsters like Shane van Gisbergen and Daniel Suarez.

NASCAR is in a legal battle against 23XI Racing and Front Row Motorsports over "anti-competitive practices to prevent fair competition in the sport."