- Target shareholders sued the company over its alleged failure to predict backlash to its DEI initiatives in 2023. The lawsuit claims that Target shares dropped as a result of the backlash.
- The lawsuit seeks damages from Aug. 26, 2022, through Nov. 19, 2024.
- Target’s share prices dropped 22% in November 2024.
Target shareholders filed a lawsuit against the retail giant on Friday, Jan. 31, accusing it of failing to predict the backlash to its diversity, equity and inclusion (DEI) initiatives. The lawsuit also claims Target hid the backlash from its May 2023 Pride Month campaign.
During this time, the company removed some LGTBQ-themed merchandise after in-store confrontations with customers caused employees to fear for their safety.
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Target’s share prices dropped by more than 20% in November 2024 after it predicted disappointing profit and holiday sales.
Shareholders argued the big box retailer’s falling shares were “in stark contrast” to the results of rivals like Walmart and suggested “continued backlash from its campaigns” was to blame.
As of Monday, Feb. 3, Target has yet to respond to the lawsuit.
How has the public responded to Target’s DEI?
The lawsuit comes after Target said on Jan. 24 that it would end its DEI initiatives this year, including a program to support Black-owned businesses it had adopted after the 2020 murder of George Floyd.
Civil rights advocates criticized the move and called for a nationwide Target boycott over the decision.
What’s the bigger picture?
Target joined Walmart, Amazon and other retail giants in rescinding DEI initiatives. President Donald Trump and several Republicans have criticized and targeted these initiatives.
The law firm that filed Friday’s lawsuit said it is still seeking a lead plaintiff.
