The State Board of Administration of Florida, which oversees public pension funds owning Target stock, has filed a securities fraud lawsuit against Target in the federal court in Fort Myers, Florida. This marks the first shareholder lawsuit led by a U.S. state concerning Target’s alleged mismanagement of diversity, equity, and inclusion (DEI) matters. Florida claims that Target misled investors and its core customer base by making false statements in financial reports about its DEI and environmental, social, and governance mandates. The lawsuit also accuses CEO Brian Cornell of underestimating the impact of customer boycotts following a controversial May 2023 Pride Month campaign, which contributed to a decline in Target’s share price. Florida’s Republican attorney general, James Uthmeier, criticized corporations promoting radical leftist ideologies at the expense of financial returns, jeopardizing the retirement security of first responders and teachers. Target has not yet responded to requests for comment but has previously warned investors about potential consumer boycotts related to its social initiatives. The backlash from the Pride campaign led Target to remove some LGBTQ-themed merchandise after employee safety concerns arose. Target’s share price has dropped over 50% from its November 2021 peak, including a 22% fall on November 20, 2024, wiping out $15.7 billion in market value. Target announced it will end DEI initiatives this year. The case is State Board of Administration of Florida v Target Corp et al, U.S. District Court, Middle District of Florida, No. 25-00135. — news from Reuters
