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Monday, February 24, 2020

Pension plan alleges Target inflated stock price

By Molly English-Bowers | May 27, 2016


MINNEAPOLIS (Legal Newsline) – A pension plan is suing Target Corporation, alleging violations of the Federal Securities Law related to the retailer's failed attempt to enter the Canadian market.

The Police Retirement System of St. Louis, individually and on behalf of all others similarly situated, filed the lawsuit May 17 in U.S. District Court for the District of Minnesota against Target Corporation, Gregg W. Steinhafel and John J. Mulligan, both former chief executive officers for the retailer.

Target announced Jan. 13, 2011, its plans to expand into Canada, that was abandoned four years later for a variety of reasons. Before Target Canada filed for bankruptcy, the retailer made a series of reassuring statements, allegedly reassuring investors that the expansion was progressing well, according to the complaint. 

However, the suit alleges, both Steinhafel and Mulligan knew that wasn't the case.

The St. Louis Police pension purchased the publicly traded common stock of Target at artificially inflated prices before the expansion plan failed, according to the suit. Furthermore, Steinhafel and Mulligan owed a duty to investors to promptly disseminate accurate and truthful information with respect to Target's stock, the suit alleges

The Police Retirement System of St. Louis  seeks a trial by jury to declare a proper class action, class damages, interest, reasonable costs, attorney fees and equitable relief the court deems proper. They are represented by attorneys Carolyn G. Anderson, June P. Hoidal and Kirsten D. Hedberg of Zimmerman Reed LLP in Minneapolis, and by Christopher J. Keller, Eric J. Belfi and Michael W. Stocker of Labaton Sucharow LLP in New York.

U.S. District Court for the District of Minnesota Case number 16-cv-01315-ADM-FLN

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Target Corporation