One of the nation’s largest Black-owned automotive suppliers is suing an industry association for stripping the company of its minority-owned certification, claiming the move was arbitrary and threatens its business prospects.
Detroit-based Piston Group, owned by entrepreneur and former Detroit Pistons NBA player Vinnie Johnson, on Tuesday sued the nonprofit Michigan Minority Supplier Development Council. The council in February revoked the minority status of several of Piston Group’s subsidiaries.
According to the lawsuit, Piston Group said the council told the company that the decision was because Mr. Johnson, who is Black, isn’t involved enough in day-to-day operations—a characterization the company rebuts—and that his leadership team wasn’t diverse enough.
Piston Group claims in the lawsuit that without its minority status it will lose out on business opportunities. Across industries, large companies use minority-purchasing programs to ensure diversity within their supply chains. Certification puts minority-owned suppliers on the radars of the procurement arms of big companies.
Piston Group is asking the Wayne County circuit court in Detroit, where the suit was filed, for an injunction that would restore its minority certification.
