STORY FROM: COVID-19 Litigation Report

Adult Entertainment Business Calls SBA’s Finding that Business is Ineligible for PPP Funding Unconstitutional

DETROIT –– An adult entertainment facility has filed a lawsuit against the United States Small Business Administration, arguing that the SBA’s finding that establishments of a similar nature are ineligible for funding under the Paycheck Protection Program is a violation of the U.S. Constitution.

Plaintiffs DV Diamond Club of Flint, doing business as “Little Darlings,” filed their complaint for emergency temporary restraining order, preliminary and permanent injunctive relief and declaratory relief on April 8 in the U.S. District Court for the Eastern District of Michigan.

In it, the plaintiffs argued that the defendants are discriminating against workers who are entitled ...

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