Target Corporation has been sued by a group of shareholders who claim the company deceived them about the risks associated with its diversity and social initiatives. The proposed class action lawsuit, filed in a Florida federal court, alleges that Target failed to disclose the potential backlash from its Environmental, Social and Governance (ESG) and Diversity, Equity and Inclusion (DEI) initiatives.
The lawsuit, led by the City of Riviera Beach Police Pension Fund, claims that Target’s CEO Brian Cornell and other officials concealed the risk of consumer boycotts and removed LGBTQ-themed merchandise after in-store confrontations. This move was allegedly made to avoid potential backlash from conservative groups.
As a result of these actions, Target’s share price plummeted by 22% on November 20, 2024, wiping out approximately $15.7 billion in market value. The lawsuit seeks damages for shareholders between August 26, 2022, and November 19, 2024.
The controversy surrounding Target’s DEI initiatives has been ongoing since the company announced it would scale back its programs, including a Black-owned business support initiative, following criticism from conservatives like U.S. President Donald Trump. The case is set to go to trial in the Fort Myers, Florida federal court with the case number 25-00085.
Source: https://www.mprnews.org/story/2025/02/04/target-sued-for-defrauding-shareholders-about-dei