The State Board of Administration of Florida, represented by Attorney General James Uthmeier and America First Legal (AFL), has filed a class-action lawsuit against Target Corporation. The suit alleges that Target misled investors about the financial risks associated with its LGBTQ activism, resulting in significant financial losses for shareholders. Boyden Gray PLLC and Lawson Huck Gonzalez PLLC are also involved as plaintiff’s counsel.
The lawsuit claims that Target violated Sections 10(b) and 14(a) of the Securities Exchange Act of 1934. It is alleged that the company did not disclose potential customer backlash risks tied to its diversity, equity, and inclusion (DEI) initiatives and environmental, social, and governance (ESG) mandates during its 2023 Pride Campaign. Furthermore, it is claimed that Target falsely assured investors it was monitoring social and political risks while only aligning with activist groups.
Following the launch of the campaign, Target's stock price dropped significantly—losing $10 billion in market value in ten days and $25 billion over six months. This marks one of the company's worst performances in decades.
This lawsuit follows an earlier case filed by AFL and its co-counsel against Target for securities fraud. That case remains ongoing after a federal judge allowed it to proceed past a motion to dismiss in December 2024.
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.”
Reed D. Rubinstein from America First Legal added, “Target misled and defrauded its investors... destroying billions in shareholder value.”
Florida Chief Financial Officer Jimmy Patronis criticized companies prioritizing "performative virtue signaling" over profitability.
Jason Gonzalez from Lawson Huck Gonzalez commented on recovering investor losses due to Target’s actions, while Jonathan Berry from Boyden Gray PLLC emphasized their intention to aid those harmed by these corporate decisions.