Yost Seeks to Lead Lawsuit Claiming Target Cost Investors Billions

(COLUMBUS, Ohio) — Ohio Attorney General Dave Yost is seeking lead-plaintiff status in a securities class-action lawsuit accusing Target of misleading investors about the financial risks of initiatives promoting the company’s divisive social agenda.
 
Yost on Tuesday filed a motion to lead the case on behalf of the State Teachers Retirement System of Ohio. The lawsuit alleges that Target artificially inflated its stock value by downplaying the likelihood of backlash to social-activism initiatives, fueling millions of dollars in losses for STRS and billions more for other investors.  
 
“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 the lawsuit, Target, headquartered in Minneapolis, aggressively promoted programs centering on diversity, equity and inclusion as well as environmental, social and governance issues during the case’s period of focus, beginning in March 2022. Most notably, a Pride Month campaign in May 2023 sparked widespread boycotts over the sale of controversial products.
 
In the aftermath of the campaign, Target’s sales fell for the first time in six years as the company’s market value tanked by an estimated $25 billion, leading to its stock’s longest losing streak in 23 years.
 
The lawsuit says Target downplayed market concerns about the initiatives and falsely assured investors that the company was more focused on maximizing shareholder value than promoting social goals, when the company knew the opposite was true. The boycotts, the lawsuit says, revealed that Target had created severe risks for investors that should have been avoided.
 
The lawsuit, filed in the U.S. District Court for the Middle District of Florida, seeks damages for the financial losses caused by the company’s wrongdoing. Target executives, including Chair and CEO Brian Cornell, are also named as defendants.

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Dominic Binkley: 614-728-4127

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