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Target has found itself at the center of a legal battle with the state of Florida, which has filed a lawsuit accusing the company of misleading investors and misrepresenting its diversity, equity, and inclusion (DEI) policies.

The lawsuit, filed on Thursday by the State Board of Administration of Florida in a federal court in Fort Myers, alleges that Target's promotion of DEI initiatives led to a backlash that negatively affected its stock price.

The state claims that Target's DEI efforts, particularly its controversial Pride Month campaign in May 2023, misled both customers and investors.

The campaign, which featured LGBTQ+ merchandise, caused a stir among some shoppers and led to confrontations in stores, with some employees fearing for their safety, Ruters said.

As a result, Target was forced to remove some of the merchandise from its shelves.

The lawsuit asserts that the company did not adequately disclose the risks of its DEI and Pride Month initiatives, which ultimately hurt sales and shareholder value.

Florida's Attorney General James Uthmeier, who was appointed by Governor Ron DeSantis, filed the lawsuit under the Securities Exchange Act.

He argued that Target's actions violated the law by failing to disclose the "known risks" associated with its DEI efforts.

"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 activism."

Target Faces Legal Action Over DEI Rollback After Pride Month Backlash

Target, which had long been seen as a supporter of LGBTQ+ and Black rights, made headlines in 2023 with its Pride Month merchandise.

The move was met with backlash from some conservative shoppers, and the company faced pressure from these groups.

According to AP News, Target announced in January 2024 that it would scale back its DEI initiatives, including discontinuing a program aimed at supporting Black employees and Black-owned businesses.

This shift aligned with actions taken by other major corporations, including Walmart and Amazon, which have also curtailed their DEI efforts in response to growing criticism from conservatives.

The lawsuit highlights the growing tension between corporate diversity initiatives and conservative political forces, particularly in light of recent attacks on DEI programs.

Uthmeier's lawsuit against Target is just one example of a broader push by Republican state leaders to challenge the increasing presence of DEI programs in the corporate world.

In its response to the lawsuit, Target has not yet issued an official comment.

The company's decision to reduce its DEI efforts comes at a time when diversity programs across the corporate world are facing heightened scrutiny, with some major brands scaling back or eliminating such initiatives entirely.

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Target, Lawsuit