Faith-Based Investing Firm Joins Lawsuit Against Target Over ESG, DEI Mandates

December 7, 2023

Boise, Idaho-based Inspire Advisors, a faith-based investing firm, has joined a lawsuit against Target Corporation and its Board of Directors, alleging misleading representations about the company’s Environmental, Social, and Governance (ESG) and Diversity, Equity, and Inclusion (DEI) policies.

The lawsuit, originally filed by America First Legal (AFL) and Boyden Gray PLLC, claims that Target’s initiatives in these areas have resulted in significant financial losses for investors.

The lawsuit centers on Target’s LGBT Pride Campaign, which, according to Inspire Advisors, has led to consumer backlash and boycotts, adversely affecting shareholder value.

Inspire CEO Robert Netzly (pictured above, left) said…

“Target is not above the law and must be held accountable for their reckless, ideologically motivated LGBT Pride Campaign and the damage it has caused shareholders. As faith-based investors, we are sending a message to Target and any other company watching on the sidelines that we expect companies to act ethically and uphold their fiduciary duty to shareholders and will hold them accountable as such.”

The lawsuit specifically points to the 2023 “LGBT!-Pride” campaign as a significant factor in triggering boycotts that have led to substantial financial losses. Additionally, it is claimed that Target and its CEO Brian Cornell have understated the severity of the consumer backlash to the campaign.

In a statement released when the lawsuit was initially filed in August 2023, AFL’s Vice President and Counsel Gene Hamilton (pictured above, right) said:

“Target failed to execute its duty to its shareholders by making statements that led them to believe that political and social risks were being assessed–when in reality, the only thing Target’s Board and Management cared about was how effectively they fulfilled the desires of various metrics advanced by leftwing ‘stakeholders.'”