Latest news with #CityofRivieraBeachPolicePensionFund
Yahoo
11-02-2025
- Business
- Yahoo
This Riviera Beach board is suing Target for the DEI efforts it's already ending
It's not hard to find attacks these days on so-called DEI — diversity, equity and inclusion. But you wouldn't expect it coming from the city of Riviera Beach, which lists 'diversity' as one of the city's bedrock values. 'We celebrate diversity as a core tenant and fundamental aspect of government, and we look to be inclusionary in activities and programs in an effort to ensure everyone is equally part of the process,' the city's value statement reads. The government of Riviera Beach, which is 65 percent Black, reflects its minority-majority population. The mayor and four of the five city council members are Black. Five of the eight members of the executive staff of the police department, including the chief and assistant chief, are Black. The city manager is Black. The assistant fire chief is Black. So, it was a bit of a shocker to read that the lead plaintiff in a newly filed federal lawsuit that a New York law firm is trying to cultivate against Target for the economic consequences of that retailer's DEI policies is a city board in Riviera Beach. The City of Riviera Beach Police Pension Fund v. Target contends that the investments of the pension fund, in which a small share was Target stock, suffered because of the national backlash to the retailer's DEI policies. In the lawsuit, the pension board, which is chaired by a Black motorcycle officer working for the city's police department, paints itself as a victim of Target's diversity initiatives, which are characterized as a 'misuse of investor funds to serve political and social goals.' Speaking of social goals, the city's police department notes that qualified applicants can request affirmative-action hiring. 'The Riviera Beach Police Department values diversity and strives to be inclusive in its activities and programs,' the department's online site reads. 'The RBPD also has a community-oriented policing program that emphasizes diversity in representation.' So Riviera Beach city officials, including its police officers, know a thing or two about the advantages of diversity, equity and inclusion. Target's diversity initiatives grew from the 2020 police-custody homicide of George Floyd in Minneapolis, the corporate home of Target. Floyd's death and the subsequent civil rights protests it generated became the impetus for wide-ranging diversity initiatives at the company. Target pledged to grow its Black workforce by 20 percent, and establish a Racial Equity Action and Change committee to 'focus specifically on how we can drive lasting impact' for Black employees and customers. Target also announced it would spend more than $2 billion in buying more products from Black-owned vendors, while pledging millions more to support Black-led nonprofits and scholarships to Black students at historically Black colleges and universities. The company also pledged to do more to support women, LGBTQ+ people, veterans and people with disabilities. Target's CEO Brian Cornell characterized these wide-ranging initiatives as good business moves that would grow the company. 'The things we've done from a DE&I standpoint — it's adding value, it's helping us drive sales, it's building greater engagement with both our teams and our guests. And those are just the right things for our business today,' he said at the time. But the political right painted a sinister portrait of DEI as the central evil of a 'woke' ideology that constituted reverse-discrimination against straight white men. And Target became a focal point in the evolving culture war. Whipped up by this frenzy, incidents occurred when members of the public stormed the stores, vandalized merchandise and threatened employees during Target's LGBT-Pride campaign in the spring of 2023. The lawsuit filed by the Riviera Beach Police Fund contends that Target failed to warn its investors that its diversity initiatives could reduce the value of its stock. And that the failure to warn the investors constitutes civil fraud, the lawsuit contends. 'As the truth of the negative effect of these campaigns came to light, Target suffered tens of billions of losses in its market capitalization from May 2023 through present,' the lawsuit contends. An addendum to the lawsuit shows that the Riviera Beach Police Pension Fund bought about a thousand shares of Target stock in the fall of 2022 at $156.21 and $164.68 per share, and then sold them the following year for $133.54 per share. Opinion: Yes, Disney trips can be educational for students, even if you don't get it That's a loss of 14.5 to 19 percent. This stock represented a sliver of the pension fund's investments, which require that no more than 5 percent of the fund can be invested in any one stock. Rand Hoch, the founder of the Palm Beach County Human Rights Council, called Riviera Beach's involvement in this lawsuit 'insane.' 'I'm shocked that they would be involved with an action that is totally against what Riviera Beach has stood for for so long,' Hoch said. 'It's embarrassing.' Opinion: Gov. DeSantis keeps Florida in the dark by obstructing government transparency The Riviera Beach police pension board is the only listed plaintiff in the suit, which was filed by Grant & Eisenhofer, a New York based firm that calls itself 'a global leader in complex, high-stakes plaintiff advocacy.' The lawsuit was filed in the Middle District of Florida, a federal jurisdiction that doesn't include Riviera Beach. The law firm is advertising for more lead plaintiffs to join the lawsuit by the April 1 deadline in hopes of making it a class-action case. Michael Brown is the officer who chairs the Riviera Beach Police Pension Fund, and the person who authorized the fund's participation in the suit. Brown declined to talk about the suit and how Riviera Beach got involved in it. He referred questions to the board's Miami attorney, Pedro Herrera. Herrera referred questions to a lawyer in Philadelphia, Marc Weinberg, who didn't return a call for comment. The mayor, the police chief, and all five city council members all failed to respond to questions about their prior knowledge of the lawsuit. As for Target, the company announced last month that it was ending most of its diversity, equity and inclusion efforts due to 'the importance of staying in step with the evolving external landscape.' This capitulation to DEI critics prompted some civil rights groups to call for a boycott of Target. Frank Cerabino is a news columnist with The Palm Beach Post, part of the USA Today network. This article originally appeared on Palm Beach Post: Target DEI lawsuit finds an ally in Riviera Beach | Opinion
Yahoo
04-02-2025
- Business
- Yahoo
Target's DEI drama just got messier — and now investors want their money back
A new lawsuit claims Target misled shareholders about the financial risks of its diversity and inclusion initiatives, and now billions are on the line. Target's ongoing DEI controversy just took a legal turn. The retail giant — along with CEO Brian Cornell and its current and former board members — is facing a class action lawsuit accusing them of misleading investors about the financial risks tied to the company's diversity, equity, and inclusion (DEI) initiatives. The class action lawsuit filed by the City of Riviera Beach Police Pension Fund in Florida claims that Target issued 'false and misleading' statements regarding its DEI, environmental, and social policies. According to Reuters, the shareholders' filing also states that the company defrauded them into paying inflated stock prices and unknowingly supported leadership's 'misuse of investor funds to serve political and social goals.' The lawsuit also references Target's controversial 2023 LGBT Pride Campaign. As previously reported by theGrio, the retailer found itself at the center of a culture war when it debuted its Pride-themed merchandise, only to later pull select items after in-store confrontations raised safety concerns. This, of course, sparked even more outrage — both from those who opposed the collection and those who felt betrayed by its removal. 'For more than a decade, Target has offered an assortment of products aimed at celebrating Pride Month,' Target said in May 2023, per ABC News. 'Since introducing this year's collection, we've experienced threats impacting our team members' sense of safety and well-being while at work. Given these volatile circumstances, we are making adjustments to our plans, including removing items that have been at the center of the most significant confrontational behavior. Our focus now is on moving forward with our continuing commitment to the LGBTQIA+ community and standing with them as we celebrate Pride Month and throughout the year.' Despite its public statements, investors claim that the decision led to a significant decline in its stocks and that Target failed to disclose the backlash that caused Target's share price to fall 22% on Nov. 20, 2024, wiping out about $15.7 billion of market value. The lawsuit comes amid a broader corporate retreat from DEI commitments. Earlier this year, major brands — including Walmart, Meta, and McDonald's—began scaling back DEI efforts following political scrutiny, particularly from conservative circles. Now, with investors pushing back, the future of corporate DEI strategies remains uncertain. More must-reads: The 2025 Met Gala is a tailored celebration of Black men's fashion and individuality New Orleans bans coolers — but not guns — in French Quarter security zone during Super Bowl week Marcus Jordan, son of Michael Jordan, charged with cocaine possession, DUI, following arrest in Orlando, FL Sign in to access your portfolio
Associated Press
31-01-2025
- Business
- Associated Press
Grant & Eisenhofer Files Class Action Lawsuit Against Target Corporation on Behalf of Pension Fund
Institutional investor City of Riviera Beach Police Pension Fund filed a class action lawsuit today against Target Corporation ('Target' or the 'Company'), Target's CEO Brian C. Cornell, and current and former members of Target's Board of Directors, David P. Abney, Douglas M. Baker, Jr., George S. Barrett, Gail K. Boudreaux, Robert L. Edwards, Melanie L. Healey, Donald R. Knauss, Christine A. Leahy, Monica C. Lozano, Grace Puma, Derica W. Rice, and Dmitri L. Stockton. The action alleges that they defrauded investors by issuing false and misleading statements concerning certain conduct undertaken pursuant to Target's Environmental, Social, and Governance ('ESG') and Diversity, Equity, and Inclusion ('DEI') mandates. The suit, brought in federal court in the United States District Court for the Middle District of Florida, Fort Myers Division, was filed by leading investor law firm Grant & Eisenhofer P.A. The action is brought on behalf of all persons or entities who purchased or acquired Target common stock from August 26, 2022 through November 19, 2024, inclusive (the 'Class Period'). The action is captioned City of Riviera Beach Police Pension Fund v. Target, Corp., et al., No. 2:25-cv-00085 (M.D. Fla.). The action has been marked as related to Craig v. Target Corp., et al., No. 2:23-cv-00599-JLB-KCD (M.D. Fla.). The complaint alleges violations of Sections 10(b), 14(a), and 20(a) of the Securities Exchange Act of 1934. Specifically, Target failed to warn investors of risks associated with its mandates regarding its ESG/DEI initiatives. Target's stock price was artificially inflated as a result, and its Board members secured re-election, causing additional damages. In May 2023 these risks materialized as Target faced customer backlash from one of its hallmark ESG/DEI initiatives – Target's LGBT-Pride Campaign (the 'Campaign'). Certain of Target's customers responded to the Campaign by boycotting Target. Over time, the market realized the scope of the consumer backlash and, from May 17, 2023 to June 14, 2023, Target's stock declined from closing prices of $160.96 to $124.12. Widespread consumer boycotts and news related to their growth continued from June 2023 into 2024 causing further stock price declines and additional damages. On August 16, 2023, during Target's Q2 2023 earnings report, Target revealed that the Campaign had harmed the Company's earnings and other financial metrics. From the day prior to the Q2 2023 earnings report release, August 15, 2023, to October 6, 2023, Target's stock fell from closing prices of $125.05 to $105.01 per share. The risks associated with the Campaign further materialized on November 20, 2024 when Target announced that its GAAP-adjusted earnings per share were $1.85, compared with $2.10 in the same quarter of 2023, a decline of 11.9%. This news caused Target's stock to fall from a close of $156 on November 19, 2024 to a close of $121.72 on November 20, 2024, a decline of 22%. Investors who purchased or acquired Target common stock during the Class Period are members of this proposed Class and may be able to seek appointment as lead plaintiff, which is a court-appointed representative of the Class, by complying with the relevant provisions for the Private Securities Litigation Reform Act of 1995 (the 'PSLRA'). See 15 U.S.C. Section 78u-4(a)(2)(A)(i)-(iv). If you wish to serve as lead plaintiff, you must move the Court by no later than April 1, 2025, which is the lead plaintiff deadline that was established by publication of this notice on January 31, 2025. You do not need to seek to become a lead plaintiff in order to share in any possible recovery. You may also retain counsel of your choice to represent you in this action. If you wish to discuss this action or have any questions concerning this notice or your rights, please contact Caitlin M. Moyna at Grant & Eisenhofer at 646-722-8513, or via email at [email protected]. You can also find more information at 646-722-8513 SOURCE: Grant & Eisenhofer P.A. Copyright Business Wire 2025. PUB: 01/31/2025 05:26 PM/DISC: 01/31/2025 05:26 PM
