Investors sue Target, alleging financial loss from backlash to Pride merch
The class action lawsuit alleges Target leadership misled investors about the financial impact of boycotts in 2023.
MINNEAPOLIS — Investors sued Minneapolis-based Target Corporation on Jan. 31, alleging sales plummeted following customer boycotts over the company’s Diversity, Equity and Inclusion initiatives, specifically its 2023 Pride collection.
In the complaint, the City of Riviera Beach Police Pension Fund alleges Target misled investors by making false and misleading statements about the company’s DEI mandates, as well as those included in its Environmental, Social and Governance guidelines.
According to the plaintiffs, the mandate led to widespread customer boycotts after Target launched its 2023 Pride merchandise, causing stock prices to sink.
Target faced two waves of boycotts: First, conservative customers raised alarms over the merchandise, particularly clothing intended for trans people. Then once Target reacted by removing some Pride items and moving the display to the back of certain stores, LGBTQ people and supporters responded by boycotting the store as well.
In the lawsuit, the plaintiffs alleged that Target’s leadership did not disclose the risks of their 2023 Pride line, which caused investors to purchase stocks at “artificially inflated prices and to unknowingly support Target’s Board and management in their misuse of investor funds to serve political and social goals.”
After the boycotts began in 2023, plaintiffs stated that Target leadership downplayed the financial impact on investors.