Target was sued by Florida on Thursday for allegedly hiding the risks of diversity and social initiatives that led to customer backlash and wiped out billions of dollars from retailer market value .
A securities fraud lawsuit filed in federal court at Fort Myers, Fort Florida, a securities fraud lawsuit by the Florida State Board of Trustees, an agency that oversees the public pension fund that owns the Target shares.
This is the first shareholder lawsuit led by the state over alleged mismanagement of targets on issues of diversity, equity and inclusion (DEI).
Florida is central to investors and their client-based working families by creating false and misleading statements in financial reports and power-of-at-law statements regarding DEI missions and environmental, social and governance mandates. He accused him of betraying his customer base.
Chief Executive Brian Cornell also downplayed the strength of the “disastrous” and “exceptionally offensive” customer boycotts in the May 2023 Pride Month Campaign, extending the decline in target stock prices. He criticized him.
“Companies that promote radical left-wing ideology at the expense of financial interests risk the retirement security of Florida's first responders and teachers,” state Republican Attorney General James Usmier said. stated in.
The target did not respond immediately to a request for comment.
The Minneapolis-based retailer said in court documents it has repeatedly warned investors about the risk of boycotting consumers from its social and environmental initiatives.
A backlash from the Pride Month campaign has led Target to remove LGBTQ-themed products from the shelves.
Retailer stock prices have been falling since removal began, but rival Walmart stocks have almost doubled.
Target's stock price has fallen by more than 50% since its peak in November 2021.
This included a 22% decline on November 20th, when retailers wiped out a market value of around $15.7 billion after forecasting disappointing profits and holiday sales.
On January 24th, Target said it would end its DEI initiative this year.
They joined Walmart, Amazon and other companies to curb such initiatives that President Trump and many other conservatives have attacked.
The Florida lawsuit joins similar proposed class action lawsuits filed on January 31st and August 2023. Both are located at Fort Myers.
This case was conducted by the State Board of Trustees of the Florida Target Corp et al, Central District of Florida, US District Court, No. This is 25-00135.
