A Target shareholder whose shares lost over $20,000 after the retailer’s disastrous Pride Month collection that featured tuck-friendly swimwear and LGBTQ-friendly gear for infants and children is suing the store for allegedly misleading investors.
The lawsuit was filed by anti-radical left group America First Legal on behalf of investor, Brian Craig, who spent around $50,000 for 216.450 shares of Target in April 2022.
By April 2023, the value of Craig’s holdings fell to $34,839, and then dropped to $28,896 by June 14 — in the middle of Pride Month, as Target was in the middle of a boycott triggered by a collection that included childrens book titled Twas the Night Before Pride, and a handful of T-shirts donning LGBTQ-friendly slogans, like live laugh lesbian.
Target’s “board of directors betrayed both Target’s core customer base of working families and its investors by making false and misleading statements concerning Target’s environmental, social and governance (ESG) and diversity, equity and inclusion (DEI) mandates that led to its disastrous 2023 children-and-family themed LGBT Pride campaign.”
These “false and misleading statements,” the court documents argued, led “shareholders to unknowingly support Targets board and management in their misuse of investor funds to serve its divisive political and social goals — and ultimately lose billions.”
Even after Target was getting fierce backlash from its conservative consumers over its Pride-themed merchandise, it “continued the LGBT-Pride campaign and continues to sell products associated with the campaign, causing further damage to Target’s stock price,” the suit alleges.
As of Monday morning, Target’s website still touted Pride apparel for sale.
American First Legal vice president and general counsel Gene Hamilton said in a press release: “Federal law requires publicly-traded corporations to provide certain information to shareholders in their proxy statements that allow those shareholders to make informed decisions. As alleged in our complaint, Target failed to execute its duty to its shareholders.”
As a result, Craig is requesting that Target admit to violating rules in the Securities Exchange Act of 1934, which governs transactions in the secondary market, and award financial damages.
Should Craig win the case, the sum he receives would be determined at a later trial.
Representatives for Craig at American First Legal did not immediately respond to The Post’s request for comment.
The Post has also sought comment from Target.
Following Target’s release of its rainbow-clad collection, “PRIDE,” in May, Targets stock lost nearly $14 billion as the controversy grabbed headlines.
The court documents, which were filed in Florida federal court earlier this month, claim that the steep drop in market value is a direct and predictable result of managements calculated decisions to promote sexualized material to children.”
About $10 billion of market cap was lost between May 18 and 28, the filing said, referencing a New York Post article — the cheap-chic retailer’s “longest losing streak in 23 years.”
“The stock value remains depressed,” the suit added, noting that Craig still owns 216 shares of Target.
As of Monday morning, the Minneapolis-based retailer’s share price fell nearly 0.4%, to $130.72.
Over the past three months, Target’s stock has slipped about 14%, though shareholders have been losing money from their investments in the retailer long before it released the Pride collection.
However, after Target reported that its quarterly sales for the first time in six years for the three-month period ended July 29, it was attributed customers negative reaction to its spring Pride clothing.
Sales at stores and digital channels open for at least a year were off 5.4% from a year earlier, according to Targets Q2 earnings report released last week, while digital sales slipped 10.5%.
Targets CFO Michael Fiddelke addressed Targets disastrous rainbow-clad collection in an earnings call on Wednesday, saying: Traffic and top line trends were affected by the reaction to our Pride assortment.
Fiddelke said on the call that the retailer couldnt quantify the impact the Pride collection alone had on comparable sales.
The retrial of Harvey Weinstein has begun in New York – with a prosecutor telling the court the former Hollywood mogul used “dream opportunities as weapons” to prey on the three women accusing him of sexual abuse.
Weinstein, who is now 73, is charged with raping one woman and forcing oral sex on two others. He has strenuously denied the allegations.
Following a lengthy jury selection process due to the high-profile nature of the retrial, the prosecution has now opened its case at the same courthouse in Manhattan.
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2:48
Why is Weinstein getting a retrial?
Attorney Shannon Lucey told the court the Oscar-winning producer and studio boss used “dream opportunities as weapons” against the female accusers.
“The defendant wanted their bodies, and the more they resisted, the more forceful he got,” she said.
Weinstein had “enormous control over those working in TV and film because he decided who was in and who was out,” the court heard. “He had all the power. They had none.”
Dressed in a dark suit and navy tie, Weinstein listened to the prosecution’s statement after arriving in court in a wheelchair, as he has done for his recent appearances.
His lawyers are expected to outline their case later on Wednesday.
Image: Steven Hirsch/ New York Post via AP/ pool
The opening statements got under way after the last jurors were finally picked on Tuesday, more than a week after the selection process began.
Prospective jurors were questioned about their backgrounds, life experiences and various other points that could potentially impact their ability to be fair and impartial about a case that has been so highly publicised. They have also been asked privately about their knowledge of the case and opinions on Weinstein.
Seven men and five women have been chosen to hear the trial.
Why is there a retrial?
In 2020, Weinstein was sentenced to 23 years in prison after being found guilty of charges of sexual assault in 2006 and rape in 2013, relating to two women.
But in April 2024, New York’s highest court overturned the convictions due to concerns of prejudicial testimony and that the judge in the original trial had made improper rulings.
Prosecutors announced a retrial last year and a separate charge concerning a third woman, who was not part of the original trial, has since been added to the case. She alleges the producer forced oral sex on her at a hotel in 2006.
Weinstein has pleaded not guilty to all charges and denies raping or sexually assaulting anyone.
Weinstein was also sentenced in February 2023 after being convicted of rape during a separate trial in LA – which means that even if the retrial ends in not guilty verdicts on all three counts, he will remain behind bars.
Robert Jenrick has vowed to “bring this coalition together” to ensure that Conservatives and Reform UK are no longer fighting each other for votes by the time of the next election, according to a leaked recording obtained by Sky News.
The shadow justice secretary told an event with students last month he would try “one way or another” to make sure Reform UK and the Tories do not compete at another general election and hand a second term in office to Sir Keir Starmer in the process.
In the exclusive audio, Mr Jenrick can be heard telling the students he is still working hard to put Reform UK out of business – the position of the Tory leader Kemi Badenoch.
Image: Shadow justice secretary Robert Jenrick. Pic: PA
However, more controversially, the comments also suggest he can envisage a time when that position may no longer be viable and has to change. He denies any suggestion this means he is advocating a Tory-Reform UK pact.
The shadow justice secretary came second to Mrs Badenoch in the last leadership contest and is the bookies’ favourite to replace her as the next Conservative leader.
Image: Robert Jenrick lost the Tory leadership contest to Kemi Badenoch. Pic: PA
Speaking to the UCL Conservative association dinner in late March, he can be heard saying: “[Reform UK] continues to do well in the polls. And my worry is that they become a kind of permanent or semi-permanent fixture on the British political scene. And if that is the case, and I say, I am trying to do everything I can to stop that being the case, then life becomes a lot harder for us, because the right is not united.
“And then you head towards the general election, where the nightmare scenario is that Keir Starmer sails in through the middle as a result of the two parties being disunited. I don’t know about you, but I’m not prepared for that to happen.
“I want the right to be united. And so, one way or another, I’m determined to do that and to bring this coalition together and make sure we unite as a nation as well.”
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This is the furthest a member of the shadow cabinet has gone in suggesting that they think the approach to Reform UK may evolve before the next general election.
Last night, Mr Jenrick denied this meant he was advocating a pact with Reform UK.
Sir Keir used Prime Minister’s Questions on Wednesday to accuse Ms Badenoch of having “lost control of her party” and said Mr Jenrick and Reform leader Nigel Farage are “cooking up their joint manifesto”.
“The member for Clacton (Mr Farage) is going to do what he always does – eat the Tory party for breakfast,” he added.
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9:16
PM ‘doesn’t know what he believes’
A source close to Mr Jenrick said: “Rob’s comments are about voters and not parties. He’s clear we have to put Reform out of business and make the Conservatives the natural home for all those on the right, rebuilding the coalition of voters we had in 2019 and can have again. But he’s under no illusions how difficult that is – we have to prove over time we’ve changed and can be trusted again.”
Mrs Badenoch has said in interviews that she cannot see any circumstances in which the Tories under her leadership would do a deal with Reform UK.
Richard Fuller, the Conservative’s shadow chief secretary to the Treasury, insisted to Sky News Mr Jenrick was not talking about a coalition, but meant if you divide up “the right” then “you end up with a far left government” and “we want to make sure we don’t repeat that mistake”.
Image: Reform UK leader Nigel Farage. Pic: PA
Reform UK’s deputy leader Richard Tice told Sky News “competition is a good thing” and for people who do not want to vote for Labour, “they’ve got to vote for common sense, courage and leadership, and you only get that from Reform UK”.
“Frankly, they [the Conservatives] should disappear into sort of yester-year,” he said.
“And we are at a once in a century moment where a new party is taking over from the Conservatives.”
Mr Tice added: “Robert, you’re saying some good things on justice. But you’re in the wrong party, chap.”
Chair of the Labour Party, Ellie Reeves, said: “I think people have the right to know what they’re voting for when they go to the polls, are they voting for a coalition of chaos or voting Conservative, getting Reform, voting Reform, getting Conservative?
“These grubby backroom deals Jenrick seems to be talking about, they need to come clean about it, Badenoch needs to come clean about it.”
In next week’s local elections, Reform UK will compete directly against the Tories in a series of contests from Kent to Lincolnshire. At last year’s general election, in more than 170 of the 251 constituencies lost by the Conservatives the Reform vote was greater than the margin of the Tories’ defeat.
Today’s YouGov/Sky voting intention figures put Reform UK in front on 25%, Labour on 23% and the Conservatives on 20%, with the Lib Dems on 16% and Greens on 10%.
With news overnight that a peace conference in London today would be going ahead without UK Foreign Secretary David Lammy or US Secretary of State Marco Rubio, are peace talks over Ukraine going backwards? Sam and Anne discuss what’s going on.
And Rachel Reeves is landing in Washington today for what promises to be one of the most important IMF spring meeting in years – will she make any progress on a trade deal for the UK?
Also, Sam has obtained a leaked recording of former Tory leadership contender Robert Jenrick vowing to “bring this coalition together” to ensure that Conservatives and Reform UK are no longer fighting each other for votes.