The think tank argued in its proposal that the Supreme Court’s 2023 decision that race-based affirmative action programs in college admissions processes violated the Fourteenth Amendment has called into question the legality of DEI programs.

The center said that since the court’s decision, other companies have cut back or eliminated DEI out of fear of legal, reputational or financial risks.

Indeed, Toyota, Meta, Walmart, Ford and others have scaled back or ditched DEI altogether, and the center contended that while Costco rebranded its equity program, “sticking a new label on discriminatory practices does not protect Costco and its shareholders from these risks.”