By Jonathan Stamp
(Reuters) – Target has been charged with alleged hidden risks of his diversity and social initiatives, which leads to a recoil through which customers fled and plummeted the share price of the retailer established in Minneapolis.
In a proposed Class Action on Friday, shareholders, led by the city of Riviera Beach Police Pension Fund in Florida, said that Target has cheated them to pay bloated prices for its shares and unconsciously the “abuse of investors' investors to support political and social goals To serve. “
The lawsuit said that the retailer, CEO Brian Cornell and other officials have not announced the risk that the boycots of consumers arising from the environment, social and administration of Target and diversity, fairness and inclusion initiatives of Target.
It also said that Target Hidden Hidden Record of the Pride Month campaign of May 2023, as a result of which the retailer had removed a number of merchandise with LGBTQ theme after confrontations in the store led some employees to fear their safety.
The stock price of Target fell by 22% on November 20, 2024, with approximately $ 15.7 billion in market value being wiped out after it had predicted disappointing profit and holiday sale.
The shareholders said that the underperformance of Target 'in stark contrast' was for the results at rival Walmart, and reflect 'continuous recoil of his campaigns'.
Target did not respond immediately on Monday to requests for comment.
The lawsuit in the Fort Myers, the Federal Court of Florida, is looking for compensation for target shareholders from 26 August 2022 to 19 November 2024.
It was submitted after Target said on January 24 that it would end the dei initiatives this year, including a program to support companies in the black ownership that took on after the murder of George Floyd in 2020 by a Minneapolis police officer.
Target joined Walmart, Amazon.com and some other prominent companies to scales such initiatives, which were attacked by many conservatives, including US President Donald Trump.
The case is City of Riviera Beach Police Pension Fund against Target Corp et al, US District Court, Middle District of Florida, no. 25-00085.
(Reporting by Jonathan Stamp in New York; adaptation by Marguerita Choy)
