Investor Brian Craig filed a lawsuit on Tuesday against retailer Target and its Chief Executive Officer Brian Cornell over the company’s failure to adequately monitor the political and social risks associated with its LGBTQ merchandise.
The lawsuit was filed in a Florida federal court by America First Legal, a non-profit organization headed by Stephen Miller, a former adviser to Donald Trump.
Craig, who owns 216 shares in the company, alleges that Target’s board misrepresented its oversight of “social and political risks” to the company. Specifically, he alleges that the board focused exclusively on the rewards associated with reaching its diversity goals while ignoring the potential risks and backlash that could accompany them.
He cites the company’s sudden pull of LGBTQ-themed merchandise during Pride Month due to “increased confrontations between shoppers and employees and incidents of products being thrown on the floor.”
Craig is seeking damages for the decline in Target’s share price arising from the consumer backlash as well as a ruling that the company violated U.S. securities law.
The lawsuit is the latest example of conservative legal groups and Republican legislators challenging corporations on social issues such as race and gender. While both sides expressed their respective views on the lawsuit, Target has yet to respond to requests for comment.
As the lawsuit progresses, we will see how it affects Target and the broader landscape of corporate accountability for its role in social issues. Additionally, the suit might signal other large companies to reevaluate their risk-monitoring systems for diversity and inclusion initiatives.
