Florida Pension Board Sues Target Over DEI Practices
Target faces a legal challenge from the State Board of Administration of Florida, which oversees public pension funds holding Target stock. The complaint alleges Target misled investors about the financial impact of backlash against its 2023 Pride collection and diversity, equity, and inclusion (DEI) initiatives.
Florida argues that Target's Pride campaign led to significant consumer backlash, boycotts, and a decline in sales. The lawsuit blames DEI practices for Target's stock performance rather than other business factors.
Target executives acknowledge that backlash against the Pride collection affected traffic and sales, but they emphasize the difficulty in quantifying its precise impact. The company has faced competition from Walmart and Amazon, among other challenges.
Amid criticism from anti-DEI groups, Target recently retired several DEI initiatives. Other retailers have also adjusted their approach to DEI, influenced by President Trump's executive order targeting private sector DEI practices in the federal government.