The State Board of Administration of Florida has filed a lawsuit against Target, alleging the company misled investors regarding the backlash against its LGBTQ Pride collection and DEI practices. This complaint indicates that the backlash led to significant financial losses for the company, including a drop in stock price and market capitalization. The lawsuit follows previous legal challenges from other shareholders, asserting a clear trend in accountability for corporate actions impacting investor interests amidst heightened scrutiny surrounding DEI initiatives.
The Campaign provoked immense consumer backlash and boycotts that caused Target's sales to fall for the first time in six years and wiped out over $25 billion in Target's market capitalization-leading Target's stock to experience its longest losing streak in 23 years.
Target executives did say during an August 2023 earnings call that traffic and top-line trends were affected by backlash to its Pride collection, but added that "it's not possible to reliably quantify the separate impact."
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