Target Case Charts Path for ‘Go Woke, Go Broke’ Securities Suits

A conservative group’s lawsuit accusing Target Corp. of misleading investors about financial risks from LGBTQ Pride marketing underscores a new line of attack against companies over their diversity and inclusion initiatives.

Target was sued this month by America First Legal Foundation, a nonprofit led by former Trump adviser Stephen Miller. The long shot complaint alleges Target, which faced conservative backlash over LGBTQ Pride marketing, deceived investors about its oversight of risks related to its diversity, equity, and inclusion policies.

Conservative legal groups have launched a wave of challenges to corporate DEI initiatives, going after McDonald’s Corp., Kellogg Co., ...