Florida files suit against Target, claiming DEI initiatives 'misled investors'

[Prairie Gates]

5. So having DEI and Pride policies were a material risk factor under the Act and SEC Rules?

Definitely interested in how they get to that point in the filing.

Because it sounds insane.

The stock has suffered significantly since they were forced to drop the DEI and Pride policies. Does the argument go like this:

The company instituted DEI/Pride. That caused their business to increase along with their stock price. But then they were forced to drop DEI/Pride due to pressure from external pressure groups, including, of course, the State of Florida. Dropping DEI/Pride caused the stock to decline rapidly, costing Florida investors (and the state pension plans) tons of money. Therefore, instituting the DEI/Pride policies in the first place should have been disclosed as a material risk factor given the possibility that external pressure groups (including us) would force them to drop those policies and thereby lose money.

I mean, we can follow the logic, but it is hilariously contorted. Of course, all they have to do is install a Musk Teen Ranger at the SEC to rewrite the risk factor rules to read that DEI/Pride should have been disclosed, and then get the Supreme Court to apply that retroactively. All of which is, of course, possible, since we're down the rabbit hole now with the Cheshire Cat and the Queen of Hearts.