In the summer of 2023, Target’s value plummeted by over $12 billion, the sharpest decline in more than two decades, after the company embraced radical gender ideology in its Pride campaign. While Target’s Board of Directors publicly claimed it was monitoring political and social risks related to its Environmental, Social, and Governance (ESG) and Diversity, Equity, and Inclusion (DEI) mandates, the company failed to assess or disclose the reputational and financial fallout that would result from alienating its core customer base in favor of activist-driven marketing.
On behalf of a shareholder, America First Legal (AFL) sued Target Corporation and its Board for breaching their fiduciary duties and violating securities laws. The lawsuit alleges that Target misled investors by disregarding foreseeable risks tied to its controversial corporate activism. The case is currently being litigated.
