Florida officials file lawsuit against Target due to activism

Florida Attorney General James Uthmeier joined a class action lawsuit against Target on Thursday alleging the retail giant concealed the possible effects on its stock price from its pro-LGBTQ policies.

The lawsuit was filed along with America First Legal, Boyden Gray PLLC and Lawson Huck Gonzalez in the U.S. District Court for the Middle District of Florida in Fort Myers.

Uthmeier said the state is joining the lawsuit due to possible effects on the state's defined-benefit pension plan for state and local employees, which is a Target investor.

The lawsuit alleges Target violated two sections of the Securities Exchange Act of 1934 by failing to disclose risks of consumer backlash to its polices on diversity, equity and inclusion and environmental, social and governance. The complaint also alleges that Target misled investors by claiming to monitor those risks.

After Target's Pride Campaign in 2023, the company's stock plummeted, losing $10 billion in market value in just 10 days and erasing $25 billion in shareholder value over the course of six months. According to the complaint, that was Target stock's worst performance and longest losing streak in 23 years.

"Those losses put the retirement accounts of Florida's teachers and first responders at unacceptable risk," Uthmeier said in a video posted to X. "Our public servants should not suffer diminished retirement security because companies focused on leftist virtue signaling. No company should be celebrating and marketing the sexualization of our children.

"This is a fight worth having and we will fight to hold Target financially accountable for these wrongful practices and force them to get back to the business of doing business."

It represents the second lawsuit brought against Target by the two law firms over what they characterize as securities fraud from the company concealing possible fiscal impacts of its LGBTQ activism. The first lawsuit is still active.

"My office will stridently pursue corporate reform so that companies get back to the business of doing business — not offensive political theater," Uthmeier said in a news release. "We appreciate America First Legal's assistance in the fight to keep Florida’s investments safe."

Florida Chief Financial Officer Jimmy Patronis also praised the state joining the lawsuit in a statement.

"We've seen time and time again that when companies prioritize performative virtue signaling and wokeness over profitability, they alienate customers, lose market value, and erode shareholder trust — all while pretending their activism carries no financial risk," Patronis said. "It's unacceptable and Florida is fighting back on behalf of taxpayers and investors that have had enough.

"Businesses like Target need to focus on the bottom line and do right by their customers, not some ESG overlords. Thank you to Governor DeSantis and the SBA for leaning forward on this issue."