Florida sues Target for misleading shareholders about DEI

FORT MYERS, Fla. – The state of Florida filed a lawsuit against Target on Thursday, alleging the retailer misled investors about the risks associated with its diversity and social initiatives. This reportedly led to customer backlash and a drop in the retailer's stock price.

The lawsuit, reported by Reuters, was filed by the State Board of Administration of Florida—an agency that manages public pension funds holding Target stock—and was submitted to federal court in Fort Myers.

Target did not respond to requests for comment from Reuters.

Shareholders sue Target alleging fraud over DEI risks disclosure

The complaint claims Target’s statements on DEI efforts highlighted benefits but omitted crucial information.

Mass Market RetailersThorvardur de Shong

Florida claims that Target misrepresented its environmental, social, and governance (ESG) policies and its diversity, equity, and inclusion (DEI) initiatives, ultimately alienating investors and its core customer base of working families.

The state cites the retailer’s controversial May 2023 Pride Month campaign. Following in-store confrontations that left some employees concerned for their safety, Target pulled certain LGBTQ-themed merchandise.

On January 24, Target announced plans to discontinue its DEI initiatives in 2024, joining major retailers like Walmart and Amazon in scaling back such programs.

Target hit with national boycott call for dropping DEI initiatives

Activists called on civil rights organizations, including the NAACP and the Urban League, to stand against Target’s decision.

Mass Market RetailersThorvardur de Shong