MINNEAPOLIS, MN (trfnews.i234.me)—Target Corporation is facing a lawsuit from investors alleging the retailer misled shareholders about financial risks associated with its Diversity, Equity, and Inclusion (DEI) initiatives and 2023 Pride collection, which sparked nationwide boycotts.
The City of Riviera Beach Police Pension Fund filed the lawsuit on Jan. 31, claiming Target’s leadership made false and misleading statements about the company’s DEI and Environmental, Social, and Governance (ESG) policies, failing to disclose their potential financial risks.
Investor Allegations and Lawsuit Details
According to the plaintiffs, Target’s 2023 Pride collection led to widespread boycotts, causing a significant drop in sales and stock prices. Investors allege:
- Target failed to warn them of potential backlash over its LGBTQ+ merchandise and DEI commitments.
- The company’s stock was “artificially inflated” as a result of misleading corporate disclosures.
- Target leadership downplayed financial risks after boycotts began, leaving investors unaware of potential stock losses.
The Boycotts That Sparked the Lawsuit
Target faced two waves of customer boycotts:
- Conservative backlash erupted after the retailer released Pride merchandise, including gender-affirming clothing and LGBTQ+ items for children.
- LGBTQ+ advocates and allies responded with their own boycott after Target removed select Pride items and relocated displays to the back of certain stores.
The combined boycotts hurt sales, leading to a decline in Target’s stock price—an impact that investors say the company failed to properly disclose.
What’s Next for Target?
The lawsuit seeks to hold Target accountable for allegedly misleading investors about financial risks tied to its social and political policies. Target has not publicly responded to the lawsuit as of yet.
Stay with TRF News for further updates on this developing case.
I’m Chris Harper, reporting for trfnews.i234.me