Judge condemns efforts to strip Piston Group of minority certification
A black-owned automotive supplier can retain its minority-owned business status, a Wayne County District Court judge ruled.
It was “wrong” and “inappropriate” for the Michigan Minority Supplier Development Council to fail to recertify Piston Group LLC as a minority business, Judge Annette Berry wrote in a ruling Tuesday.
The Southfield-based company was founded and owned by former Detroit Pistons basketball star Vinnie Johnson, who also serves as chairman of the board of directors.
The ruling ends a legal battle that began in 2021 and led to a trial before Berry in December. MMSDC and its CEO Michelle Robinson, who grants minority-owned business status, said they revoked the certification because Piston Group’s subsidiaries were run by white men.
Berry wrote in her ruling that the evidence did not support the defendant’s argument that Johnson delegated the “entire” day-to-day operations of his companies to other individuals in senior positions, including non-minorities.
She wrote that it was clear from the statement that after Robinson learned of Johnson’s successful business ventures, he asked her to make a financial donation of $300,000 to MMSDC.
“When Johnson asked what the money was to be used for, he was met with resistance and anger,” Berry wrote. “Johnson was not satisfied with the MMSDC’s answers and refused to provide any further financial support. It is clear from the evidence in this case that Robinson and others at the MMSDC sought to target Johnson and the Piston Group by interfering in the Piston Group’s business activities.”
Berry decided that Johnson was sufficiently involved in the day-to-day operations of his company.
In a statement emailed Wednesday by company spokesman Shaun Wilson, the Piston Group wrote: “We are extremely pleased with the ruling, which fully vindicates our position. We look forward to continuing to grow the Piston companies. The judge’s statement quoting Robert Kennedy, ‘Every time a man stands up for an ideal, works to improve the lives of others, or fights against injustice, he sends out a small glimmer of hope…’ when speaking of how Mr. Johnson lived his life, was particularly meaningful to Vinnie.”
Representatives of the MMSDC were not immediately available for comment.
As the case progressed, Piston Group was able to retain its minority-owned status because the Michigan State Court of Appeals in March 2022 affirmed a June 2021 Wayne County District Court decision ordering the council to restore the corporation’s status pending litigation.
The certification helps minority businesses bid on automotive contracts.
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