Florida filed a lawsuit against Target on Thursday, accusing the company of misleading investors by failing to disclose the financial risks associated with its LGBTQ Pride merchandise line after the collection sparked conservative boycotts two years ago. The lawsuit is the latest in a series of Republican-led legal challenges to corporate diversity, equity, and inclusion (DEI) initiatives.

“This is a frivolous suit in blatant violation of the First Amendment,” LGBTQ legislative researcher Allison Chapman told Truthout. “The goal is to have a chilling effect that warns retailers if they sell anything for Pride, they could face legal repercussions.”

The State Board of Administration of Florida, which manages public pension funds that hold Target stock, filed the securities fraud lawsuit in federal court in Fort Myers. This marks the first time a U.S. state has sued a corporation over alleged mishandling of DEI policies under shareholder protections, according to Reuters.

“The lawsuit is wrapped in a technical securities regulation argument but at the core of it, they’re effectively saying Target knew this country was bigoted and not catering to those bigotries and warning of the risk was fraudulent on the part of their investors,” civil rights attorney and Harvard Law School Cyberlaw Clinic instructor Alejandra Caraballo said on Bluesky.

In May 2023, Target became a focal point of right-wing outrage after........

© Truthout