Florida has filed a lawsuit against Target, claiming the company misled investors by promoting diversity, equity and inclusion initiatives

The US state of Florida has sued supermarket giant Target, accusing it of misleading investors and causing financial losses by promoting diversity, equity and inclusion (DEI) initiatives.

Attorney General James Uthmeier filed the lawsuit in federal court in Fort Myers on Thursday, claiming that Target failed to disclose the potential financial risks associated with its DEI policies, thereby misleading investors.

The lawsuit also alleges that Target's DEI efforts, including its 2023 Pride Month campaign, contributed to consumer backlash and boycotts. It claims that this reaction led to a decline in the company's stock value and a loss of more than $25 billion in market capitalization.

"Corporations that push radical leftist ideology at the expense of financial returns jeopardize the retirement security of Florida's first responders and teachers," Uthmeier said. He stressed that his office will pursue corporate reform so that "companies get back to the business of doing business - not offensive political theatre."

Target has faced at least three similar lawsuits in Florida, all accusing the company of violating securities laws by not informing investors about the potential financial impact of its DEI initiatives. The company announced in January that it would scale back several DEI programs, including those supporting black employees and black-owned businesses.

However, Target has not explicitly linked the decision to the lawsuits, and the move follows a broader trend of major US companies, including Walmart and McDonald's, reducing their DEI commitments in response to political and social pushback.

US President Donald Trump has taken action against DEI programs since returning to office last month. On his first day back in office, Trump signed executive orders aimed at eliminating DEI initiatives in federal agencies and among government contractors, arguing that such programs promote discrimination.

Target has not commented on the latest lawsuit.