New class action lawsuit says Target 'misled investors' with DEI initiatives

Audio By Carbonatix

Target has been hit with a class action lawsuit after shareholders say the retail giant misled investors about the risks of DEI initiatives, which led to mass boycotts and tanking stock prices.

The lawsuit claims that Target misused investor funds for "political and social goals," then fooled investors into buying stock at "artificially inflated prices."

Target lost almost $16 billion in market cap in a single day after the company faced severe backlash over its DEI push and pride initiatives.

Customers were angry about the front of store pride displays showing tuck-friendly female bathing suits and pride-themed clothing for kids.

Target's sales fell 5.4% in the quarter ending July 2023, the first time its sales dropped in six years, according to the lawsuit.