Target must face shareholder lawsuit over Pride backlash, US judge rules
Published On Dec 4, 2024, 5:51 PM
Target is facing a shareholder lawsuit after a U.S. District Judge ruled that investors could argue the company misled them regarding the risks associated with its LGBTQ-themed merchandise for Pride Month, which led to customer backlash and a boycott. The lawsuit claims Target's board prioritized diversity initiatives but failed to adequately consider potential negative responses from the public, particularly after incidents where the merchandise led to confrontations in stores.
Stock Forecasts
TGT
Negative
The lawsuit may negatively impact Target's stock price in the near term due to increased investor uncertainty surrounding the company's handling of social issues. Furthermore, ongoing scrutiny from conservative groups could lead to reputational challenges for Target, affecting consumer sentiment and sales.
Related News
With Discounts on Offer, Shoppers Seem to Bite
Nov 29, 2024, 5:57 PM
Early data on online spending this week shows consumers are being drawn to discounts. A clearer picture of Black Friday sales, including in-store spending, will emerge in the days ahead.
Holiday Shopping Season Separates Winning Retailers From Losers
Nov 29, 2024, 5:02 AM
Consumers are seeking deals and being choosier about their spending in the crucial final weeks of the year, executives say.
Target’s Hot Santa Ads Join ‘Hot Frosty’ in Spiced Up Holidays
Nov 28, 2024, 5:04 AM
A new series of ads from Target features Kris K., a “weirdly hot” version of the beloved character, continuing a trend of spicing up holiday favorites.