A securities fraud lawsuit has been filed against Target by the State Board of Administration of Florida, an agency responsible for overseeing public pension funds that own Target stock. The lawsuit was filed in the federal court in Fort Myers, Florida, marking the first shareholder lawsuit led by a U.S. state over Target’s alleged mismanagement of diversity, equity, and inclusion (DEI) matters. Florida accuses Target of misleading investors and its core customer base by making false statements in financial reports about its DEI and environmental, social, and governance (ESG) mandates. The state also claims that CEO Brian Cornell downplayed customer boycotts following a controversial May 2023 Pride Month campaign, which contributed to a decline in Target’s share price. Florida’s Attorney General, James Uthmeier, criticized corporations promoting radical leftist ideologies at the expense of financial returns, jeopardizing the retirement security of public workers. Target has not responded to requests for comment but previously warned investors about potential consumer backlash from its social initiatives. The retailer’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 on January 24 that 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
