Ohio AG Sues Target, Claims Investors Lost Billions Over Policies
Ohio Attorney General Seeks to Lead Lawsuit Against Target Over Investor Losses
Ohio Attorney General Dave Yost is seeking to take the lead in a securities class-action lawsuit against Target. The lawsuit claims the company misled investors about financial risks tied to its social-activism initiatives, resulting in billions of dollars in losses.
Yost filed a motion on Tuesday to represent the State Teachers Retirement System of Ohio (STRS) in the case. According to the lawsuit, Target artificially inflated its stock by downplaying potential backlash to its social policies. As a result, STRS lost millions, and other investors lost billions.
“This case isn’t about political opinions – it’s about corporate responsibility,” Yost said. “Target knew about major risks but kept them hidden from investors. That makes the company responsible for these losses.”
Lawsuit Alleges Target Misled Investors on Social Policy Risks
The lawsuit states that Target promoted diversity, equity, and inclusion programs, along with environmental and social policies, starting in March 2022. A Pride Month campaign in May 2023 triggered widespread boycotts over controversial product sales. Following the backlash, Target’s market value plummeted by an estimated $25 billion. Sales also declined for the first time in six years, and the company’s stock suffered its longest losing streak in 23 years.
The lawsuit alleges that Target misled investors by downplaying concerns and falsely claiming its focus was on maximizing shareholder value. Instead, the lawsuit argues, the company prioritized social goals, creating financial risks that could have been avoided.
Filed in the U.S. District Court for the Middle District of Florida, the lawsuit seeks damages for financial losses. Target’s Chair and CEO Brian Cornell, along with other executives, are also named as defendants.
This case highlights ongoing tensions between corporate social policies and investor interests. The outcome could set a precedent for how companies disclose risks related to social initiatives.
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