Three days into his job, Florida Attorney General James Uthmeier on Thursday announced a class-action lawsuit that alleges Target Corp. did not properly disclose to investors the risks of a 2023 LGBTQ Pride campaign that drew a consumer backlash and caused a drop in the retailer’s stock price.
Uthmeier and private attorneys filed the 163-page lawsuit in federal court in Fort Myers on behalf of the State Board of Administration, which manages Florida’s massive pension fund and other investments. The lawsuit is one of at least three similar cases against Target in Florida.
The lawsuit alleges that Target made false and misleading statements about “Environmental, Social and Governance” and “Diversity, Equity, and Inclusion” mandates that led to the May 2023 Pride campaign.
“The campaign provoked immense consumer backlash and boycotts that caused Target’s sales to fall for the first time in six years and wiped out over $25 billion in Target’s market capitalization — leading Target’s stock to experience its longest losing streak in 23 years,” the lawsuit said.
Uthmeier was sworn in Monday as attorney general after serving as Gov. Ron DeSantis’ chief of staff. DeSantis appointed Uthmeier to replace former Attorney General Ashley Moody, who became a U.S. senator last month.
The lawsuit names as defendants Target, Chief Executive Officer Brian Cornell and members of the company’s Board of Directors. It alleges violations of a law known as the Securities Exchange Act of 1934.
“Target’s CEO Brian Cornell and its Board of Directors did not oversee or disclose the obvious risks of Target’s 2023 LGBT-Pride Campaign and the ESG/DEI initiatives which it advanced, but they told investors that they did,” the lawsuit said. “In doing so, they deceived Target investors as to the true nature of the risks of their investments and caused them to unknowingly support Target’s board and management in their misuse of investor funds to serve its divisive political and social goals — and ultimately cost investors billions.”
But in a January 2024 court filing in one of the other Florida cases, Target disputed such allegations, saying it “repeatedly warned investors of the risk” of consumer boycotts because of its initiatives, including the 2023 Pride campaign.
The Target filing said the plaintiffs in that case were unhappy with “Target’s business judgment about merchandising. But disagreeing with Target’s business judgment does not give rise to an actionable claim under the securities laws.”
The new lawsuit filed on behalf of the State Board of Administration seeks to include a class of all people who bought Target stock from March 9, 2022, to Aug. 16, 2023. It said the class likely would include “at least hundreds of thousands of members.”
The class period was chosen because Target issued a 2021 annual report on March 9, 2022, and reported quarterly earnings on Aug. 16, 2023, that included the period of the Pride campaign.
The lawsuit said the State Board of Administration held 787,694 Target shares on March 8, 2022, and continued buying shares after that. It also said Target had a $160.96 stock price on May 17, 2023 — as the backlash took place — before falling to a low of $105.01 per share on Oct. 6, 2023. The price closed at $128.13 on Thursday.
Uthmeier was joined in filing the lawsuit by attorneys from the group America First Legal and the firms Boyden Gray PLLC and Lawson Huck Gonzalez, PLLC.
“Corporations that push radical leftist ideology at the expense of financial returns jeopardize the retirement security of Florida’s first responders and teachers,” Uthmeier said in a prepared statement. “My office will stridently pursue corporate reform so that companies get back to the business of doing business — not offensive political theatre.”
–Jim Saunders, News Service of Florida
Jackson says
Since COSTCO seems to be the only store with any guts, I have renewed my lapsed membership and will be giving them as much business as I can. I have been a loyal Target customer forever, but they don’t have anything I can’t find somewhere else.
Pig Farmer says
You must run your business the way we want you to run it! You must support our ideology!
Free state of Florida my …!
Sue says
My 9 year old grandaughter didn’t like to be faced with “woke” ideas in bathing suits!! Had some young girls with extra material in the front private area!!! 9 years old shouldn’t be subjected to that!! I won’t shop Target!
Laurel says
“Woke bathing suits” are you kidding? So let me ask you this: How would your granddaughter know this at nine years old? Sounds to me like a cheap suit with parental definition and misdirected *education.*
Woke bathing suits. The world is on fire, and you are worried about a cheap suit, with probably too tight elastic, made in China.
Nephew Of Uncle Sam says
Another waste of taxpayer money brought to you by the State of Florida.
Thomas says
Welcome to Florida the state the discriminates against everyone that isn’t white and a Republican.
Endless dark money says
nazis are in charge of amerikkka, how is this surprising they are racist and hate people. The gop terrorists are sending people to concentration camps. Sick and sad
Ed Danko, former Vice-Mayor PC says
We no longer shop at Target. Their
radical leftist ideology cost them our business. No doubt shareholders lost money due to this stupidity. And now that we have BJ’s who needs DEI Costco? Liberals enjoy your Budlight!
Sherry says
@ Sue, may I ask you please. Exactly how is it that your 9 year old granddaughter even noticed the extra material in women’s swim suits? Be honest now. If somehow she did notice on her own, did she ask you for an explanation? If so, what did you say? Couldn’t you just been “positive” and brush it off saying something like “honey, let’s look at these over here”. Or, are “you” the one who is bigoted? Are you the one responsible for passing that “bigotry” along to your 9 year old granddaughter? Please really think about that.
Pogo says
@Stop pretending that shaking down businesses is patriotic and morally defensible
,,,and admit you’re anti-democratic fascist thugs running the state like a banana republic where organized crime is the actual economic system.
Winning the rat race doesn’t change the fact it’s a race between rats!
R.S. says
Actually, I have not been buying enough at Target. Must change my ways decidedly. If the troglodyte in the governor’s mansion and his crew oppose something, it’s a sure bet to support it. I mean, Florida has invested $500 mill. of citizens’ money in the s…hole state in the Middle East that’s engaged in genocide of its neighbors without asking me if I want to get into that moral risk either.
Justbob says
In 2020 and was an estimated 886,000 LGBTQ folks living in Florida. That’s a whole lot of potentially pissed off people.
Skibum says
Sue, it is YOU who is indoctrinating your 9 year old that some clothing items are “woke” and somehow offensive. You are most likely also teaching her, or at least letting her observe your far right thinking and attitude that minorities and immigrants are bad, invaders, rapists and murderers, just like the orange-faced baboon in the WH has a habit of proclaiming, huh? Just what kind of bigoted, entitled, horrible upbringing are you forcing upon a 9-year old child, anyway???
R.S. says
So it’s bigoted idiots like you, Ed Danko, that caused the drop in shares, eh? And now people like you are suing because they cannot stand some people to hold varying opinions from theirs, huh? I am absolutely delighted that you’re out of politics; but I wish you were educable enough to learn empathy.