OAN Staff James Meyers
11:35 AM – Friday, February 21, 2025
The Sunshine State has filed a federal lawsuit against Target, claiming the retail chain misled investors by failing to disclose that they would be selling diversity, equity and inclusion (DEI) merchandise, specifically for its LGBTQ+ Pride merchandise line in 2023.
The lawsuit, which was filed on behalf of the State Board of Administration, claims that Target’s stock value plummeted after consumer backlash and boycotts, which led to billions in losses. The case is one of at least three similar lawsuits against the retailer in Florida.
The suit comes almost a month after Target got rid of its DEI policies after immense pressure from Conservatives and President Donald Trump’s vows to roll back DEI policies.
Target CEO Brian Cornell, and its Board of Directors were named as defendants, accusing them of violating the Securities Exchange Act of 1934 by failing to disclose the risks of their Environmental, Social, and Governance (ESG) and DEI initiatives.
Additionally, the suit will include all investors who purchased Target stock between March 9, 2022, and August 16, 2023.
The controversy stems from Target’s 2023 Pride campaign, which included merchandise that drew heavy criticism.
As a result, Target’s stock suffered its biggest and longest losing streak in over two decades, which caused claims that the company’s officials failed to warn investors about the financial risks of rolling out DEI merchandise, the lawsuit states.
Florida attorney general, James Uthmeier (R-Fla.) has stated that holding corporations accountable for their ESG and DEI policies will be a focus as attorney general.
“Corporations that push radical leftist ideology at the expense of financial returns jeopardize the retirement security of Florida’s first responders and teachers,” Uthmeier said in a prepared statement. “My office will stridently pursue corporate reform so that companies get back to the business of doing business — not offensive political theatre.”
“Target misled and defrauded its investors, destroying billions in shareholder value to serve its management’s corrosive, radical, and deeply destructive social agenda. America First Legal is proud to continue this fight with our co-counsel Lawson Huck and Boyden Gray. We would like to thank Attorney General James Uthmeier for his leadership in bringing Florida into this fight to protect Florida’s hard-working citizens from abuse and financial loss at the hands of woke corporate elites,” said America First Legal Senior Vice President Reed D. Rubinstein.
“When Target went all-in on DEI, shareholders paid the price. With our co-counsel America First Legal and Lawson Huck Gonzalez PLLC, we intend to help every possible person harmed by Target’s choice to put politics over business,” said Jonathan Berry, Managing Partner of Boyden Gray PLLC.
Meanwhile, Target has denied any wrongdoing. In a previous court filing in another case in the state, the retail chain argued that it “repeatedly warned investors of the risk” of consumer backlash related to its Pride merchandise.
Target’s legal team dismissed the claims as an attempt to litigate “business judgement,” claiming that disagreeing with corporate decisions does not mean it’s a valid securities fraud claim.
Stay informed! Receive breaking news blasts directly to your inbox for free. Subscribe here. https://www.oann.com/alerts