America's First Legal filed a lawsuit today against Target for misleading statements it made to shareholders regarding the monitoring of political and social risks which resulted in a $12B loss after promoting queer/transgender items to children.
Target also partnered with the highly controversial GLSEN, which promotes radical gender ideology to schools under the guise of “inclusive and anti-racist curriculum” and through Gender Sexuality Alliance clubs.
Shareholders and investors were assured that Target's Board had been proactively monitoring social and political issues, as well as risks arising from the company’s environmental, social, and corporate governance (ESG) mandates and diversity, equity and inclusion (DEI) mandates.
While the company may have been monitoring ESG issues, it only did so from one perspective, completely bending to the will of the leftist, progressive agenda while excluding the perspective of customers and shareholders who held different values.
This resulted in a Pride month campaign that embraced radical transgender ideology, and saw Target promoting "Pride" clothing for children emblazoned with rainbow symbols, LGBT-themed bibs and onesies for babies, and “tuck-friendly” bathing suits for “transgender women.”
The move resulted in a $12B loss in shareholder value, the largest loss in 20 years.
America's First Legal cautioned, "This is not the first time Target’s management has used shareholder funds to virtue signal to leftist extremists, heedless of the consequences for the corporation’s brand, customers, and shareholders. After the North Carolina legislature adopted a law in 2016 to keep biological men out of bathrooms used by women and girls, Target welcomed its employees and shoppers to use restrooms and fitting rooms “corresponding to their gender identities.”
The CEO even admitted at the time that “Target didn’t adequately assess the risk” and that “the ensuing backlash was self-inflicted.”
Target was also accused of engaging in potentially illegal race-based hiring practices by adopting a plan to increase "representation of Black team members across the Company by 20 percent." Management also adopted controversial “supplier diversity” targets that required a majority of collections to be made by “LGBTQIA+ creators and brands” in 2022.
“Federal law requires publicly-traded corporations to provide certain information to shareholders in their proxy statements that allow those shareholders to make informed decisions. As alleged in our complaint, Target failed to execute its duty to its shareholders by making statements that led them to believe that political and social risks were being assessed–when in reality, the only thing Target’s Board and Management cared about was how effectively they fulfilled the desires of various metrics advanced by leftwing “stakeholders.” In so doing, they caused our client to lose a substantial amount of money, and we will vindicate his rights in federal court,” said Gene Hamilton.
You can read the lawsuit here.
How many more lawsuits will be filed over corporations that pander to woke, leftist elites? Have we finally reached the tipping point?