The Florida Attorney’s Office has filed a class-action lawsuit against Target Corp., arguing that the retailer’s Board of Directors and CEO Brian Cornell failed to disclose financial risks related to its 2023 LGBT-Pride Campaign.
The lawsuit was filed on behalf of the state’s Board of Administration, which oversees Florida investments and is a Target shareholder, on Feb. 20 in the Middle District of Florida. The complaint, which is similar to other recent lawsuits filed against Target, alleges company officials betrayed investors by making false statements about potential financial fallout from the company’s diversity, equity and inclusion (DEI) policies.
Target violated sections of the Securities Exchange Act of 1934 by shielding from investors risks of a consumer backlash from the pride campaign and other inclusion efforts, according to the lawsuit.
“The fallout from Target’s unlawful conduct was swift and catastrophic,” a news release from state Attorney General James Uthmeier’s office states. “Following the launch of Target’s 2023 Pride Campaign, Target’s stock price plummeted – wiping out $10 billion in market value in just 10 days and erasing $25 billion in shareholder value over the course of six months, its worst performance and longest losing streak in 23 years.”
“Highly inappropriate” goods were sold at Target stores during the pride campaign, including “tuck-friendly” adult women’s swimwear with “extra crotch coverage,” according to the lawsuit.
The lawsuit, which was filed with assistance from private attorneys, seeks a court declaration that Target violated federal securities law as well as an injunction requiring defendants to comply with provisions of the Securities Exchange Act. It also asks for an award of damages to class members.
“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 theater.”
Target did not respond to a request for comment, but Roni Bennett, founder of South Florida People of Color, characterized the lawsuit as another attack on DEI policies in Florida and across the nation.
“The characterization of DEI initiatives as radical leftist ideology fundamentally misunderstands their purpose,” Bennett told the Florida Record in an email. “DEI programs benefit everyone – including people with disabilities, those facing economic hardship and practitioners of various religions. Ironically, white individuals, especially white women, often gain the most advantages from these initiatives.”
Anti-DEI rhetoric and state legislation such as the Stop WOKE Act have slashed her organization’s annual revenue by 50%, according to Bennett.
“I am deeply concerned that these lawsuits will create a chilling effect, pressuring more companies to abandon their DEI commitments out of fear rather than business judgment,” she said. “This trend threatens to erase years of progress toward creating workplaces that reflect our diverse society and provide equal opportunities for all.”
Target said in a 2023 press release that the company removed some pride-themed products to protect employees from customers who were offended by the merchandise. But the complaint called such statements false and misleading and part of efforts to downplay the extent of the consumer backlash.