Target is facing a lawsuit from Florida, which alleges the retailer misled investors by prioritizing diversity, equity, and inclusion (DEI) programs.
The state of Florida is suing Target, alleging that the company’s promotion of diversity, equity, and inclusion (DEI) initiatives misled investors and resulted in financial losses.
Attorney General James Uthmeier filed the lawsuit in the U.S. District Court for the Middle District of Florida, Fort Myers Division, asserting that Target failed to inform investors about potential financial risks linked to its DEI policies, thereby deceiving them.
The lawsuit further claims that Target’s DEI efforts, particularly its 2023 Pride Month campaign, fueled consumer opposition and boycotts. These reactions, according to the lawsuit, caused a drop in the company’s stock value and a loss of over $25 billion in its market capitalization.
“Corporations that push radical leftist ideology at the expense of financial returns jeopardize the retirement security of Florida’s first responders and teachers,” Uthmeier stated. He emphasized his office’s commitment to corporate reform, ensuring that “companies get back to the business of doing business – not offensive political theatre.”
Target is already dealing with at least three similar lawsuits in Florida, all accusing the company of violating securities laws by not disclosing the potential financial impact of its DEI initiatives to investors. In January, the company announced plans to scale back some DEI programs, including initiatives supporting Black employees and Black-owned businesses.
However, Target has not directly attributed this decision to the lawsuits. The move aligns with a broader trend of major U.S. companies, including Walmart and McDonald’s, reducing their DEI commitments due to political and social backlash.
Since returning to office last month, U.S. President Donald Trump has taken aim at DEI programs. On his first day, Trump signed executive orders with the goal of eliminating DEI initiatives within federal agencies and among government contractors, arguing that these programs promote discrimination.
Target has not yet issued a statement regarding the latest lawsuit.
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