Investor sues Target for LGBTQ merchandise backlash.

A⁢ Conservative Legal ‍Organization Sues Target Over LGBTQ Merchandise Backlash

A conservative legal organization sued Target on ⁤Tuesday‍ on behalf of an investor, claiming that the retailer ‍misrepresented the adequacy of its risk monitoring. The lawsuit⁤ alleges that Target was⁤ caught by surprise when customer backlash over LGBTQ-themed merchandise erupted.

America First⁣ Legal Takes Legal Action

America First Legal, a nonprofit group led by former Trump ⁣adviser⁢ Stephen⁣ Miller,‌ filed the lawsuit in ‌Florida federal court. ⁢The legal action⁤ is on behalf of investor Brian Craig against Target, CEO Brian Cornell, and ⁢the company’s board ⁢of directors.

Conservative Legal Groups Challenge Corporate ‌Social Policies

This lawsuit‍ is part⁤ of ‍an ongoing battle between conservative ‍legal ⁢groups, Republican ⁤legislators, and corporations ‌that have implemented policies on social issues like race and gender.

A spokesperson for Target did not immediately respond to requests for comment.

Allegations of Misrepresentation

Brian Craig alleges that‌ Target‘s board misrepresented its oversight of​ “social and political risks” to the company. ⁣He claims​ that the ⁢board focused on ‍the demands of progressive activist investors while ⁤neglecting to consider potential backlash from customers.

Pulling LGBTQ-Themed Merchandise

In May, Target removed some LGBTQ-themed merchandise associated with Pride Month. The decision was made due ‌to increased confrontations between shoppers and ​employees, as ⁢well ⁢as incidents of products​ being thrown on the floor.

Craig, who owns‍ 216⁢ Target shares, argues that the board falsely⁣ claimed to monitor social and political risks while ⁤solely‌ focusing on ⁣the risks related to achieving its ESG and diversity, equity, and ⁢inclusion (DEI) goals.

Seeking Damages​ and Legal Ruling

Craig seeks damages for the decline in Target‘s share price ⁤caused ⁢by the consumer reaction. Additionally, ⁤he requests a judge to rule that the company violated⁣ U.S. securities laws.

The case is Craig‍ v. ⁤ Target Corp. et al., No. 23-00599,‍ U.S. District Court, Middle District Of Florida.

(Reporting by Jody Godoy in⁢ New York; Editing by Cynthia Osterman)