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!
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.
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.
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.
Mr. Bill says
“Corporations that push radical leftist ideology at the expense of financial returns…”
That’s what this is about.
How would you like your nest egg to drop 36% for no business reason? Money invested is a sacred business trust, and should never be used for virtue/political signaling to your pet group.
How can you guys not get this? Laural…you still here?
Deborah Coffey says
@ Ed Danko, former political loser
We bounced you out, didn’t we? And, now that we’re rid of you, we couldn’t care less where you shop or what your bigoted opinions are.
tired of it says
What is causing problems for Target is their abandoning all Diversity, Equity and Inclusion initiatives. As for Dank…is he still around? Must be trying hard to stay relevant.
R.S. says
Mr. Bill, you don’t lose a dime if you invest by way of a socially responsible investment firm. They’re not buying Israel bonds, shares in the private-business industry, or fossil fuel investments. And you pay a lot less for home purchases if you get your loan from a Sharia bank. If I were you, I’d place my mind significantly more into learning mode, rather than being driven blindly with ideological blinders on. There is more in this world than is revealed from your limited knowledge, Sir.
Joe D says
In REPLY to Ed Danko former WHATEVER:
Wow…with a BIGOTED comment like that, it’s no wonder you lost your last election.
Let’s HOPE you stay “former”…Flagler County doesn’t need your hate speech.
PS: what a terrible waste in time and money spent so the Florida MAGA leaders can gain favor with the TRUMP 2.0/MUSK administration. But it’s only MONEY Florida…YOUR MONEY 💸💸💸
PPS: Yes Laurel the world IS ON FIRE…we have a President willing to give away CHUNKS of a legitimate independent DEMOCRATIC COUNTRY to an invading DICTATOR ( with a PROVEN RECORD of not being able to be taken at his word…. “I have NO plans to invade Ukraine, that’s just WESTERN PROPAGANDA”), a US President who apparently has forgotten his HISTORY classes, when the USA stood by (before World War II) as Hitler invaded country after country across Europe in a plan to conquer the world, and ISOLATIONIST (now re-invented as “AMERICA FIRST”) USA said “Hitler is EUROPE’S PROBLEM.” Then Pearl Harbor was bombed! And also a president that has antagonized our Centuries old ALLIES IN EUROPE, CANADA and MEXICO!
And Yes Laurel, the MAGA group wants to focus your attention on DEI and “woke” bathing suits…how SAD for the USA and the WORLD!
Pogo says
@r.s.
“…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.”
Sherry says
Thank you Joe D.! As usual, an excellent comment!
trump is the King alright. . . the absolute King of Trolls! trump is a gifted convicted Criminal “Con Artist” who has completely duped 77 million people!
Samuel L. Bronkowitz says
People like Ed Danko predictably pick the most controversial position to double down on because it gets them attention. It’s negative attention, sure, but for people like Danko any attention is good because it’s attention, and perhaps home life only gave them the negative type. It’s a sad form of narcissism that not only drives anyone worthwhile away from them but also somehow validates their own corrupt view inside, making them victims or heroes in their own mind. Nothing you say or do to them will make an impact whatsoever to them because that requires a sense of self and understanding of impact on others, which he simply doesn’t have. He’s operating with a toddler’s view of self, which is incredibly sad. Imagine being an adult on the outside but raging at a world like a child on the inside, never really understanding what love is or even what peace on the inside looks like. He doesn’t deserve your anger, he deserves your pity.
BillC says
@Danko stop hitting yourself in the head with a misinformation hammer, you’ll feel better.
Laurel says
“Woke bathing suits” would actually be hilarious…if a child wasn’t involved. Then again, have you ever seen Trump laugh? Nope. Only sad shit. Misery loves company, and Trump, and his crowd, are seriously 😒😒😒😒😒 miserable.
Sherry says
@Bill C. . . Right On! The perfect solution for danko. . . and, for many other brainwashed Maga”CULT” members!
Skibum says
Mr. Bill, where to start??? First of all, just because one particular retail company’s stock might have fallen some, even at 36% as you claim, there is NO WAY in the world that it would have cost a loss of your nest egg investments UNLESS you were foolish enough to disregard every financial manager’s advice and put ALL of your nest egg retirement money into that one stock, which would be a very, very STUPID and unsound mistake. Secondly, I would be willing to bet my bottom dollar that if any investment manager were to give you investment advice saying to buy more Target stock because it was rising rapidly and had immense future potential for you to make money, YOU, like everyone else, would be buying that stock as much as you were able to regardless of what you thought about their corporate politics. Simply put, nearly ALL Americans invest their money in the stock market in order to realize long-term profits for their investment portfolios, without regard to an individual company’s perceived political bent. Plus the fact that wise investors use some version of financial planning assistance to do the work for them, and investments should ALWAYS be diversified (spread around) among various classes and types of investments so that your portfolio doesn’t take a drastic hit if one or just a few companies see some losses. Finally, over the course of the history of the U.S. Stock Market, investments have ALWAYS trended upward, growing exponentially to the historic market highs we are seeing today. You would be a complete FOOL to try to market-time and do your own investing without the knowledge and experience of dedicated professional financial investment advisors overseeing and making moves for you, so your comment suggests that if you actually lost 36% of your personal nest egg, it was due to financial malpractice on YOUR part and the fault of nobody else, regardless of where their political philosophy lies. Do better in the future and quit worrying about the fake and ridiculous furor over “wokeness”!!!
Laurel says
Trump’ll fix it.