America First Legal and Florida Attorney General James Uthmeier file lawsuit on behalf of a class

America First Legal, along with Florida Attorney General James Uthmeier, recently filed a class-action lawsuit against Target Corporation for allegedly misleading and defrauding investors regarding the financial risks associated with their LGBTQ activism. The lawsuit, filed in the U.S. District Court for the Middle District of Florida, claims that Target failed to disclose known risks related to customer backlash against their diversity, equity, and inclusion initiatives, as well as environmental, social, and governance mandates, particularly during their 2023 Pride Campaign.

According to the lawsuit, Target violated Sections 10(b) and 14(a) of the Securities Exchange Act of 1934 by not disclosing these risks to investors, leading to a significant decline in the company’s stock price. The lawsuit alleges that Target misrepresented its monitoring of social and political risks associated with its initiatives, instead focusing on its alignment with left-wing activist groups.

Following the launch of the 2023 Pride Campaign, Target experienced a severe decline in its stock price, resulting in billions of dollars in losses for shareholders. This prompted AFL, Boyden Gray PLLC, and Lawson Huck Gonzalez PLLC to file a second lawsuit against Target for securities fraud. The first case, filed in August 2023, is ongoing after a federal judge ruled that the company may have violated federal securities laws.

America First Legal Senior Vice President Reed D. Rubinstein expressed concern over Target’s actions, stating that the company prioritized its social agenda over financial responsibility to shareholders, resulting in significant financial losses. Florida Attorney General James Uthmeier echoed this sentiment, emphasizing the importance of holding corporations accountable for jeopardizing the retirement security of Florida’s citizens.

Florida Chief Financial Officer Jimmy Patronis also voiced his support for the lawsuit, highlighting the detrimental effects of companies prioritizing activism over profitability. He emphasized the need for businesses like Target to focus on their bottom line and ensure that they prioritize their customers’ needs above all else.

Jason Gonzalez, Managing Partner at Lawson Huck Gonzalez PLLC, stated that the lawsuit aims to not only recover investor losses but also send a clear message to corporate America to halt their engagement in radical activism that could harm investors. The lawsuit seeks to hold Target accountable for its actions and prevent other companies from prioritizing political agendas over their financial responsibilities.