A lawsuit filed Thursday in Florida alleges that retail giant Target allegedly hid the dangers of diversity, equity and inclusion (DEI) initiatives that caused a backlash among some of the store’s customers.
The suit also alleges that that backlash knocked the franchise’s market value down by billions of dollars.
The filing marks the first time that a state takes the lead in suing over alleged mismanagement of DEI policies on behalf of a company’s shareholders.
“Corporations that push radical leftist ideology at the expense of financial returns jeopardize the retirement security of Florida’s first responders and teachers,” James Uthmeier, the state’s Republican attorney general, said in a statement.
As for Target, which is based in Minnesota, the company has not publicly commented on the suit, but in court papers, the retailer said it issued repeated warnings to investors that some of its DEI initiatives could result in customer boycotts.
The price of Target shares has dropped since the retailer removed some of its LGBTQ-themed merchandise during Pride Month due to confrontations between employees and customers that left the company concerned for its workers’ safety.
Target shares are down over 50% since their peak in November 2021. The company announced on January 24 that it would put an end to its DEI policies in 2025.