Colorful wooden figurines symbolizing diversity, used for an article on Florida Attorney General’s securities fraud class action against Target over DEI and ESG initiatives.

Florida Attorney General Files Securities Fraud Class Action Against Target over DEI/ESG Initiatives

BySwift Law, PA

Case: In re Target Corp. Secs. Class Action Litig., No. 2:25-cv-00135 (M.D. Fla. filed Feb. 20, 2025)

In February 2025, Florida Attorney General James Uthmeier, along with America First Legal and the State Board of Administration of Florida (which manages Florida public pension funds), filed a class-action lawsuit against Target Corporation in the Middle District of Florida.

The complaint alleges that Target misled investors by downplaying or failing to disclose the risk of customer backlash tied to its 2023 Pride Month campaign and related Diversity, Equity, and Inclusion (DEI) / Environmental, Social, and Governance (ESG) initiatives. The plaintiffs claim that Target’s stock dropped sharply after negative customer reactions, and that the market value collapse was a result of Target’s misrepresentations about how it managed, disclosed, and anticipated social/political risks.

Target has argued that it warned investors of possible risks related to its DEI/ESG efforts. The case is in its early stages.

Why It Matters
  • Disclosure obligations under securities laws: Companies must be careful to disclose not just “what it’s doing,” but also the risks associated with social or political initiatives that could provoke backlash or affect business performance.
  • Investor risk and activism: Institutional investors (like those in pension funds) are increasingly willing to challenge companies if social or political strategies aren’t paired with transparent risk management.
  • Reputation and financial exposure: Even non-legal risks (consumer reactions, media pressure) tied to DEI/ESG initiatives can become legal liabilities if not properly handled, disclosed, and managed.

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