Target, the US retail giant, has been hit with another lawsuit by the state of Florida. The lawsuit claims that the company’s diversity, equity, and inclusion (DEI) efforts led to a customer backlash that wiped billions of dollars off its market value.
Florida alleges that Target misled investors about its DEI and environmental initiatives in its financial reports. The state also accuses CEO Brian Cornell of downplaying the impact of boycotts following the company’s Pride Month campaign in May 2023, which contributed to a prolonged decline in the company’s share price.
The lawsuit is being represented by Florida Attorney General James Uthmeier and America First Legal, a group led by President Donald Trump’s advisor Stephen Miller. This is not the first time Target has faced legal action over its DEI initiatives, with another similar lawsuit filed by the City of Riviera Beach Police Pension Fund in Florida earlier this month.
As other major corporations have scaled back their DEI initiatives, the lawsuit highlights the growing debate around corporate social responsibility and its impact on shareholder value.
Source: https://qz.com/target-dei-lawsuit-florida-1851765904