Evergreen Reporter

America First Legal (AFL) and Florida Attorney General James Uthmeier have initiated a class-action lawsuit against Target Corporation. The lawsuit, filed in the U.S. District Court for the Middle District of Florida, claims that Target misled investors about the financial risks associated with its LGBTQ activism, resulting in significant shareholder losses.

The allegations focus on Target's purported violation of Sections 10(b) and 14(a) of the Securities Exchange Act of 1934. It is claimed that Target failed to disclose potential customer backlash related to its diversity, equity, and inclusion (DEI) initiatives and environmental, social, and governance (ESG) mandates. These actions allegedly led to substantial market value loss following Target's 2023 Pride Campaign.

The complaint states that after launching this campaign, Target's stock price dropped sharply, erasing $10 billion in market value within ten days and a total of $25 billion over six months. This marked the company's worst performance in over two decades.

This legal action follows a previous case against Target by AFL and its partners Boyden Gray PLLC and Lawson Huck Gonzalez PLLC. That case is still ongoing after a federal judge denied Target’s motion to dismiss it in December 2024.

Reed D. Rubinstein from America First Legal commented: “Target misled and defrauded its investors, destroying billions in shareholder value to serve its management’s corrosive, radical, and deeply destructive social agenda.”

Florida Attorney General James Uthmeier stated: “Corporations that push radical leftist ideology at the expense of financial returns jeopardize the retirement security of Florida’s first responders and teachers.”

Florida Chief Financial Officer Jimmy Patronis added: “We’ve seen time and time again that when companies prioritize performative virtue signaling and wokeness over profitability, they alienate customers."

Jason Gonzalez from Lawson Huck Gonzalez noted: “This lawsuit will not only recover investor losses caused by Target’s misrepresentations but also deliver a strong message to corporate America."

Jonathan Berry from Boyden Gray PLLC said: “When Target went all-in on DEI, shareholders paid the price.”

The legal team aims to hold Target accountable for alleged violations while recovering losses for affected investors.