Florida Governor Ron DeSantis has launched a new legal battle against Target, accusing the retail giant of misleading investors about the financial risks associated with its Pride Month collection and diversity, equity, and inclusion (DEI) initiatives.
Newly appointed Florida Attorney General James Uthmeier filed the lawsuit this week in Fort Myers, arguing that Target violated the Securities Exchange Act by failing to disclose the potential backlash from its pro-LGBTQ+ and DEI efforts, which contributed to a right-wing boycott in 2023.
The Lawsuit: Target Accused of Hiding “Known Risks”
In the complaint, Uthmeier claims Target’s Pride collection and broader DEI programs led to financial losses for investors, including Florida’s public retirement funds.
“Corporations that push radical leftist ideology at the expense of financial returns jeopardize the retirement security of Florida’s first responders and teachers,” Uthmeier stated. “My office will stridently pursue corporate reform so that companies get back to the business of doing business — not offensive political theatre.”
The lawsuit alleges that Target’s 2023 LGBTQ+ Pride collection—which featured gender-inclusive clothing and products celebrating queer identity—sparked a conservative-led boycott, resulting in a decline in sales and a $25 billion loss in market capitalization.
The suit follows similar shareholder actions against Target, including one filed last month by the City of Riviera Beach police pension fund.
Target’s DEI Rollback: Attacked by Both Sides
Target has faced criticism from both the right and the left.
- In 2023, conservative groups boycotted Target over its Pride merchandise, forcing the company to scale back LGBTQ+ products in certain locations.
- In 2024, Target rolled back key DEI initiatives, stopping data sharing with the Human Rights Campaign’s Corporate Equality Index and ending programs that promoted products from Black- and minority-owned businesses.
- The DEI rollback led to backlash from LGBTQ+ and racial justice advocates, including Twin Cities Pride, which rejected a $50,000 donation from Target in protest.
Target defended its decision, stating it was an effort to align with the “evolving external landscape” and reduce business risks.
DeSantis vs. Corporate DEI: A Broader Trend
This lawsuit is part of a broader conservative effort to challenge corporate LGBTQ+ and DEI policies:
- Trump and DeSantis have both targeted DEI programs, arguing they are divisive and harmful to businesses.
- Republican-led states are pressuring corporations to scale back their commitments to social responsibility.
- Other major retailers and companies, including Disney and Bud Light, have faced similar backlash over LGBTQ+ inclusivity.
The case could become another high-profile legal battle over corporate responsibility and LGBTQ+ rights, especially as it moves through federal court.
What’s Next?
Target has yet to issue a detailed response to the lawsuit, but its executives previously stated that it’s impossible to quantify how much of its financial decline was due to the Pride backlash.
With DeSantis pushing his “anti-woke” agenda and positioning himself for future political ambitions, this lawsuit is likely to keep LGBTQ+ rights and corporate inclusivity in the national spotlight.
