Florida sues Target over alleged risks concealment

Published 20/02/2025, 17:16
© Reuters.

Investing.com -- Target Corp (NYSE:TGT) is facing a lawsuit from the state of Florida. The lawsuit alleges that the company concealed the risks associated with its diversity and social initiatives. This purported concealment led to a backlash from customers, resulting in a decline in the company’s stock price.

The State Board of Administration of Florida, an agency responsible for overseeing public pension funds that own Target stock, filed the lawsuit in the federal court in Fort Myers, Florida.

The state of Florida accused Target of betraying its investors and its core customer base, which consists of working families. The accusation centers around the company allegedly making false and misleading statements about its environmental, social, and governance mandates, as well as its diversity, equity, and inclusion initiatives.

The state board points to a "disastrous" May 2023 Pride Month campaign as a culmination of these issues. The campaign led to the removal of some LGBTQ-themed merchandise from Target’s stores following in-store confrontations that caused safety concerns among some employees.

On January 24, Target announced that it will end its diversity, equity, and inclusion initiatives this year. The move aligns it with other companies such as Walmart (NYSE:WMT) and Amazon.com (NASDAQ:AMZN), which have also curtailed similar initiatives. This trend has been met with criticism from many conservatives, including U.S. President Donald Trump.

Target has not yet provided a comment in response to the lawsuit.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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