Florida’s new attorney general filed a federal court lawsuit against Target on Thursday, claiming the discount store chain “misled investors” by promoting diversity, equity and inclusion initiatives that prompted a backlash and hurt sales, ultimately costing shareholders.
Before it scaled back its DEI efforts last month, Target was long considered a corporate advocate for the rights of Black and LGBTQ+ people. The retailer’s decision in 2023 to roll out LGBTQ+ merchandise in honor of Pride month outraged some shoppers and sparked confrontations in some stores.
In the lawsuit filed in Fort Myers, Florida, Attorney General James Uthmeier argued that Target violated the Securities Exchange Act by failing to disclose “the known risks” of its DEI and Pride month initiatives.
“Corporations that push radical leftist ideology at the expense of financial returns jeopardize the retirement security of Florida’s first responders and teachers,” Uthmeier said in a statement. “My office will stridently pursue corporate reform so that companies get back to the business of doing business — not offensive political theatre.”
Uthmeier, who was appointed as attorney general by Republican Gov. Ron DeSantis this week, has pledged to use the state’s legal muster to “champion an America-first agenda” and challenge what he called “the left.”
Target did not respond to a request for comment.
Target announced in late January that it planned to discontinue a program aimed at better serving Black employees, Black shoppers and Black-owned businesses. The Minneapolis-based retailer ushered in a series of DEI initiatives following the police killing of George Floyd in 2020.
Since then, diversity, equity and inclusion policies have come under attack from conservative activists and the White House. Walmart and a number of other prominent American brands also have scrapped or reduced their DEI commitments.
Earlier this month, Missouri’s attorney general sued Starbucks over its diversity policies, claiming the coffee chain engaged in “systemic racial, sexual, and sexual orientation discrimination.” The Seattle-based company has called the claims “inaccurate.”