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TGT.US
id: 1485
Target (TGT) ESG and DEI Risk Misrepresentation Case
M.D. Florida
Court2:25-cv-00085
Case number08/26/2022
Class period Start11/19/2024
Class period End04/01/2025
Lead Plaintiff motion deadline- $TGT investors filed a lawsuit against Target Corporation, alleging the company misled shareholders about the financial risks associated with its ESG (Environmental, Social, and Governance) and DEI (Diversity, Equity, and Inclusion) initiatives.
- On November 20, 2024, Target reported disappointing earnings and lowered its guidance. Following this news, $TGT stock dropped 22%.
Case Details:
Between August 26, 2022, and November 19, 2024, Target repeatedly assured investors that its ESG and DEI initiatives aligned with shareholder interests and did not pose material risks to the company’s financial performance. The company emphasized its commitment to reputation management and risk oversight in public statements and SEC filings.
However, Target’s 2023 and 2024 Pride campaigns led to significant consumer backlash, sparking nationwide boycotts. Despite the growing controversy, Target continued to downplay potential financial risks.
On May 17, 2023, reports of declining sales due to customer boycotts began emerging, but the company insisted that the impact was temporary. Over time, however, these issues led to weaker-than-expected sales and ongoing revenue declines.
On November 20, 2024, Target released disappointing earnings results and lowered its full-year guidance, citing reputational damage and a decline in customer loyalty. Following the announcement, $TGT stock plummeted by 22%, reflecting investor concerns over the company’s risk management and leadership decisions.
Based on these events, $TGT investors filed a lawsuit against Target Corporation, claiming the company:
- It misled investors about the financial risks of its ESG and DEI initiatives.
- It downplayed the impact of consumer backlash on sales and long-term growth.
Investors believe Target misrepresented the financial impact of its marketing strategies.
Case Status
Lead Plaintiff Submission
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
11/20/2024
Filing date
01/31/2025
Lead Plaintiff Deadline
04/01/2025