Shell is facing a lawsuit alleging the company conducted a corporate reorganization that racially discriminated against white employees.

America First Legal (AFL) filed a lawsuit on Wednesday in the U.S. District Court for the Southern District of Texas on behalf of employees in the company's security division who claimed that Shell racially discriminated against them in violation of Title VII of the Civil Rights as the company carried out a reorganization in line with corporate diversity goals.

AFL's lawsuit claims the employees had better credentials and performance reviews but were forced to reapply for their jobs, complete in-person assessments, and were ultimately replaced with less qualified candidates. 

"What our clients experienced should alarm every American," said AFL attorney Juli Haller. "If a corporation can openly discriminate against employees because of the color of their skin – under the guise of DEI – then no one's rights are safe. America First Legal is proud to seek to hold Shell accountable and restore equal justice under the law."

One of the clients and her line manager were terminated and said their supervisor provided "tear jars" as a parting gift. The AFL called it a "demeaning act that underscored the contempt with which Shell and its managers treated loyal employees whose only 'fault' was being the wrong race."

AFL said that its second client, the most experienced security advisor in the unit, faced an expedited transfer to an off-site location without a Shell office.

"Shell's apparently racially motivated purge trampled federal law, destroyed the careers of two dedicated professionals, and placed thousands of Shell employees at risk," said AFL attorney Jacob Meckler.

Shell pushed back on the allegations raised in the lawsuit and denied wrongdoing in a statement.

"Discrimination is not tolerated, and employment decisions are based on merit, qualifications, and performance, in line with our policies and local laws. We refute these allegations," a Shell spokesperson told FOX Business.