Target Sued for Defrauding Shareholders About DEI
4th February 2025
Target has been sued for allegedly concealing the risks of its diversity and social initiatives, leading to a backlash that caused customers to flee and the stock price of the Minneapolis-based retailer to plummet.
In a proposed class action lawsuit filed Friday, shareholders led by the City of Riviera Beach Police Pension Fund in Florida said Target defrauded them into paying inflated prices for its stock and unknowingly supporting management’s “misuse of investor funds to serve political and social goals.”
The lawsuit said the retailer, CEO Brian Cornell and other officials failed to disclose the risk of consumer boycotts stemming from Target’s Environmental, Social and Governance and Diversity, Equity and Inclusion initiatives.