After being sworn in on Feb. 17 as the state’s new attorney general, James Uthmeier has filed a lawsuit against Target for claims of misleading and defrauding investors over market risks involving LGBTQ activism within the company.
This is further explained in an article from My Florida Legal, discussing how the suit claims that Target violated sections 10(b) and 14(a) of the Securities and Exchange Act of 1934 by not disclosing the known risks that would come with the consumer backlash of the company’s diversity, equity and inclusion (DEI) initiatives and environmental, social and governance (ESG) mandates — which ended with a 2023 Pride campaign which was called “radical LGBTQ activism” in the lawsuit.
According to Uthmeier, who succeeded Ashley Moody after DeSantis appointed her to a vacant U.S. Senate seat, “Corporations that push radical leftist ideology at the expense of financial returns jeopardize the retirement security of Florida’s first responders and teachers. My office will stridently pursue corporate reform so that companies get back to the business of doing business— not offensive political theatre. We appreciate America First Legal’s assistance keeping Florida’s investments safe,” Uthmeier said in a release.
This viewpoint reflects an even larger sentiment taken on by other Florida government officials including the state’s chief financial officer and the American First Legal team, among other shareholders who share similar opinions as Attorney General Uthmeier’s.
This lawsuit, similar to another filed by the City of Riviera Beach Police Pension Fund regarding Target’s Pride merchandise, comes a few weeks after Target reversed its stance regarding their well-known DEI initiatives within the company’s offerings.
Though many companies have been criticized for their rollbacks of DEI programs, Target has been the subject of larger call-outs to corporations which aren’t protecting initiatives relating to DEI programs, employment and products.
Within this lauded Pride 2023 campaign, some products were created specifically for those within the LGBTQ+ community, including a tuck-friendly swimsuit for those of trans identity.
In the case of the suit, these products were considered the main reasons for the drop in Target’s market share for their 2023 earnings, causing the company’s stocks to plummet for a consecutive six months during 2023.
Only time will tell how this lawsuit and the ongoing rollback of DEI programs will fully play out.