(The Center Square) – Ohio Attorney General Dave Yost wants to take the lead in a lawsuit against retail giant Target, saying the company’s social agenda hurts the state’s teacher retirement system.
Yost filed a motion late Wednesday to lead the case for the State Teachers Retirement System of Ohio in the suit saying the Minneapolis-based retailer artificially inflated its stock value by downplaying the chance its social initiatives would create a consumer backlash.
That, the suit says, led to millions of dollars in losses to the retirement system and billions more for others.
“This case isn’t a debate over differing ideologies – it’s about a company’s duty to give investors an honest assessment of risk and reward,” Yost said. “Target knew about significant risks but kept the information hidden from investors, and that puts the company on the hook for these losses.”
According to Fortune, traffic in Target stores has been falling for eight weeks, and the company announced in late January it would end its diversity, equity and inclusion program.
Fortune also said that other companies that continued diversity programs, like Costco, have seen customers continue to grow over the last few months.
The lawsuit says Target aggressively promoted programs centering on diversity policies, the environment, social and governance issues beginning in March 2022.
The lawsuit pointed to a Pride Month campaign in May 2023 that led to boycotts over the sale of some products, including “tuck-friendly” swimsuits and other clothing, home goods, food, and beverages aimed at the LGBTQ+ community.
Target sales fell following the campaign for the first time in six years, and the company’s market value fell by an estimated $25 billion.
The lawsuit says Target downplayed market worries about the campaign and told investors it was more focused on maximizing shareholder value than social goals when it knew the opposite was true.
The suit, filed in the U.S. District Court for the Middle District of Florida, seeks damages for financial losses.
