Target sued over failure to predict backlash from DEI initiatives

[CRAIG NIGRELLI]

TARGET SHAREHOLDERS ARE SUING THE RETAIL GIANT, ACCUSING IT OF FAILING TO PREDICT THE BACKLASH TO ITS DIVERSITY, EQUITY AND INCLUSION INITIATIVES.

THE LAWSUIT FILED FRIDAY ALSO CLAIMS TARGET HID THE BACKLASH FROM ITS MAY 2023 PRIDE MONTH CAMPAIGN IN WHICH THE COMPANY REMOVED SOME L-G-B-T-Q-THEMED MERCHANDISE AFTER IN-STORE CONFRONTATIONS WITH CUSTOMERS CAUSED EMPLOYEES TO FEAR FOR THEIR SAFETY.

TARGET’S SHARE PRICES DROPPED BY MORE THAN 20 PERCENT IN NOVEMBER OF 2024 AFTER IT PREDICTED DISAPPOINTING PROFIT AND HOLIDAY SALES.

SHAREHOLDERS ARGUE THE BIG BOX RETAILER’S FALLING SHARES WERE “IN STARK CONTRAST” TO RESULTS OF RIVALS LIKE WALMART AND SUGGESTED “CONTINUED BACKLASH FROM ITS CAMPAIGNS” WERE TO BLAME.

TARGET HAS NOT YET RESPONDED TO THE LAWSUIT.

THE LAWSUIT COMES AFTER TARGET SAID LATE LAST MONTH IT WOULD END ITS D-E-I INITIATIVE THIS YEAR, INCLUDING A PROGRAM TO SUPPORT BLACK-OWNED BUSINESSES IT ADOPTED AFTER THE MURDER OF GEORGE FLOYD IN 2020.

AS STRAIGHT ARROW NEWS RECENTLY REPORTED, CIVIL RIGHTS ADVOCATES CRITICIZED THE MOVE AND CALLED FOR NATIONWIDE BOYCOTT OF TARGET OVER THE DECISION.

[NEKIMA LEVY ARMSTRONG]

“WE THOUGHT THAT THEY WOULD CONTINUE TO STAND FOR THE VALUES THAT WE ALL HOLD DEAR. BUT INSTEAD, THEY ACTED COWARDLY, AND THEY MADE THE DECISION TO BOW DOWN TO THE TRUMP ADMINISTRATION.”

[CRAIG NIGRELLI]

TARGET HAS JOINED WALMART, AMAZON AND SOME OTHER RETAIL GIANTS IN RESCINDING D-E-I INITITIAVES THAT HAVE BEEN CRITICIZED AND TARGETED BY PRESIDENT DONALD TRUMP AND MANY REPUBLICANS. 

THE LAW FIRM THAT FILED FRIDAY’S LAWSUIT SAYS IT’S STILL LOOKING FOR A LEAD PLAINTIFF IN THE CASE.

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