Target Getting Hit HARD After Woke Marketing Campaign
Target is facing a significant legal challenge as an investor has filed a lawsuit claiming that the company misled shareholders concerning the risks associated with its LGBT marketing and diversity, equity, and inclusion (DEI) policies. The lawsuit, filed by America First Legal (AFL) and co-counsel Boyden Gray PLLC and Lawson Huck Gonzalez PLLC, alleges that Target’s LGBT, ESG (Environmental, Social, and Governance), and DEI policies have cost shareholders billions of dollars.
According to the lawsuit, Target and its board of directors are accused of betraying both their core customer base of working families and their investors by making false and misleading statements regarding the company’s ESG and DEI mandates. These mandates allegedly led to the disastrous 2023 children-and-family themed LGBT-Pride campaign. Brian Craig, the investor who filed the lawsuit, owns over 200 Target shares and claims that the corporation’s board of directors and management misled investors about risk management related to social and political messaging.
Target has faced a significant decline in market value following the backlash to its June “Pride” month displays. The company’s market value has diminished by a staggering $14 billion. The controversy surrounding Target’s “Pride” campaign intensified when the company faced criticism for offering “tuck-friendly” and “extra crotch coverage” female swimsuits. These products caused an uproar among more conservative customers.
Target’s “Pride” collection included various items such as small shirts with phrases like “Just Be You And Feel The Love,” Pride-themed onesies, rainbow-colored leggings, tutu skirts, and jumpers. The collection drew both support and criticism from different segments of society.
In response to the backlash, Target removed some products and relocated “Pride displays” to less prominent positions in certain stores. The controversy surrounding the campaign, however, had already embroiled Target in the culture war, resulting in the company experiencing the biggest stock decline in its history. This decline has cost investors billions of dollars.
The investor lawsuit claims that Target failed to fulfill its duty to shareholders by making statements that led them to believe that political and social risks were being assessed. The plaintiffs argue that Target’s board and management prioritized fulfilling the desires of left-wing stakeholders over properly managing these risks. The lawsuit further alleges that Target did not adequately consider potential criticism from more conservative customers when implementing its ESG and DEI mandates. Elon Musk had predicted that Target would face legal action due to the significant loss of market value.