Target sued by Florida for defrauding shareholders about DEI

(Reuters) – Target (TGT.N) was sued on Thursday by the state of Florida for allegedly concealing the risks of its diversity and social initiatives, leading to a backlash among customers that caused its stock price to decline.

The lawsuit by the State Board of Administration of Florida, 

 an agency overseeing public pension funds that own Target stock, was filed in the federal court in Fort Myers, Florida.

Target did not immediately respond to a request for comment.

Florida accused Target of betraying investors and its core customer base of working families by making false and misleading statements about its environmental, social and governance and diversity, equity and inclusion mandates.

It said this culminated in a “disastrous” May 2023 Pride Month campaign, which led the retailer to remove some LGBTQ-themed merchandise 

  after in-store confrontations led some employees to fear for their safety.

Target said on January 24 it will end DEI initiatives this year. It joined Walmart (WMT.N), Amazon.com (AMZN.O) and other companies in curbing such initiatives, which many conservatives including U.S. President Donald Trump have attacked.