An investor is suing Target over its LGBTQ Pride merchandise controversy that led to a $15 billion drop in the company’s market value. The shareholder wants to recoup losses over the company’s so-called woke decision-making.
It started in June during Pride month when the retailer displayed LGBTQ-friendly clothing for all ages, including “tuck-friendly” women’s swimsuits for transgender women who have not yet had gender-affirming operations. The products sparked controversy and a boycott. Target began removing some of the Pride-themed items after reports of violence in its stores.
In a statement at the time, Target said, “Since introducing this year’s collection, we’ve experienced threats impacting our team members’ sense of safety and wellbeing while at work. Given these volatile circumstances, we are making adjustments to our plans, including removing items that have been at the center of the most significant confrontational behavior.”
Target’s market value was over $74 billion before the Pride displays made national news, but by mid-June, the value dropped to as low as $58 billion. Ever since, the company has hovered in the low 60s.
America First Legal, the conservative legal organization representing the investor suing Target over stock losses, released the following statement on the social media platform X, formerly known as Twitter:
“In its 2022 and 2023 proxy statements, Target assured shareholders and investors that the board was monitoring for social and political issues and risks arising from the company’s ESG mandates,” the statement said. “However, management only cared whether its leftist ‘stakeholders’ were satisfied, disregarding the possibility that its customers and shareholders might feel differently.”
America First is a nonprofit group headed by Stephen Miller, a former adviser to ex-President Donald Trump.
Speaking of X, its owner Elon Musk had predicted back in June that legal action would be coming from Target shareholders.
Target has not issued a response to the lawsuit.
The Minnesota-based retailer is no stranger to political controversy. In 2016, a North Carolina bill required transgender people to only use public bathrooms that corresponded with the gender on their birth certificate. In response, Target welcomed its shoppers to use whichever bathroom best fit their gender identity.
This also sparked backlash largely from conservatives, but Target stood by its decision.
In a statement, the company said, “We took a stance, and we’re going to continue to embrace our belief of diversity and inclusion.”
The boycott at Target coincides with another one that has had a far-reaching impact on the beer industry. The Bud Light boycott has been detrimental to the brand.
Straight Arrow News’ Business Correspondent Simone Del Rosario sat down with a former Anheuser-Busch executive to discuss why the Bud Light boycott is different from ones in the past – and why it was first predicted by industry experts to fizzle out, yet is go strong in its fourth month.
