Recently, an investor of Target sued the retailer after it lost billions in market value from backlash tied to a pride-related campaign. The lawsuit claims that Target misled investors over the risks related to its woke marketing strategies and other diversity, equity, and inclusion efforts.
Several prominent firms filed The lawsuit earlier this week on behalf of Target investor Brian Craig in Florida. In a preliminary statement, the lawsuit claims, “Target Corporation……and its Board of Directors betrayed both Target’s core customer base of working families and its investors by making false and misleading statements concerning Target’s Environmental, Social and Governance (ESG) and Diversity, Equity, and Inclusion (DEI) mandates that led to its disastrous 2023 children-and-family themed LGBTPride campaign.”
According to the lawsuit, such woke initiatives have hindered Target’s ability to truly serve the interests of the shareholders by pursuing profitable ventures. “These false and misleading statements caused Target’s shareholders to unknowingly support Target’s Board and management in their misuse of investor funds to serve its divisive political and social goals—and ultimately lose billions,” the lawsuit continued.
Craig owns more than 200 shares of Target stock and argues that leadership at the company left investors uninformed of the risks associated with the woke corporate practices. The lawsuit claims that Target did not sufficiently analyze the risk of backlash from conservative consumers when rolling out initiatives and policies.
Vice President of America First Legal Gene Hamilton alleges that leadership at the retailer disregarded federal law requiring Target to make investors aware of risk management protocols. “As alleged in our complaint, Target failed to execute its duty to its shareholders by making statements that led them to believe that political and social risks were being assessed — when in reality, the only thing Target’s Board and Management cared about was how effectively they fulfilled the desires of various metrics advanced by leftwing ‘stakeholders,’” Hamilton stated.
The American Tribune reported earlier this year on the disaster that unfolded from the boycott against Target. According to the report in early June, Target stock was hit with several major downgrades amid the intense controversy with conservative consumers. At one point, shares of the retailer slid over 18.5 percent, translating to roughly $15 billion.
The backlash stemmed from several pride-related items that Target rolled out to consumers. First, the retailer sold a “tuck-friendly” female swimsuit with a special design, including extra crotch coverage for genitalia to be tucked in. Furthermore, it was also discovered that a designer who collaborated with Target on some of its pride-themed clothing items was an outspoken Satanist.
The controversy surrounding the retailer even provoked a response from Elon Musk, who claimed it would only be a matter of time before shareholders revolted against the company and took legal action for the decisions which erased billion in market value. Musk said, “Won’t be long before there are class-action lawsuits by shareholders against the company and board of directors for destruction of shareholder value.” It appears that Brian Craig has fulfilled Musk’s prediction of shareholders seeking accountability for the company’s financially disastrous woke decisions.
"*" indicates required fields