(Reuters) - Target ( TGT ) has been sued for allegedly concealing the risks of its diversity and social initiatives, leading to a backlash that caused customers to flee and the stock price of the Minneapolis-based retailer to plummet.

In a proposed class action on Friday, shareholders led by the City of Riviera Beach Police Pension Fund in Florida said Target ( TGT ) defrauded them into paying inflated prices for its stock and unknowingly supporting management's "misuse of investor funds to serve political and social goals."

The lawsuit said the retailer, CEO Brian Cornell and other officials failed to disclose the risk of consumer boycotts stemming from Target's ( TGT ) Environmental, Social and Governance and Diversity, Equity and Inclusion initiatives.

It also said Target ( TGT ) concealed backlash from its May 2023 Pride Month campaign, which led the retailer to remove some LGBTQ-themed merchandise after in-store confrontations led some employees to fear for their safety.

Target's ( TGT ) share price fell 22% on Nov. 20, 2024, wiping out about $15.7 billion of market value, after it forecast disappointing profit and holiday sales.

Shareholders said Target's ( TGT ) underperformance stood "in stark contrast" to results at rival Walmart, and reflected "continued backlash from its campaigns."

Target ( TGT ) did not immediately respond on Monday to requests for comment.

The lawsuit in the Fort Myers, Florida federal court seeks damages for Target ( TGT ) shareholders from Aug. 26, 2022 to Nov. 19, 2024.

It was filed after Target ( TGT ) said on Jan. 24 it would end DEI initiatives this year, including a program to support Black-owned businesses that it adopted following the 2020 murder of George Floyd by a Minneapolis police officer.

Target ( TGT ) joined Walmart, Amazon.com and some other prominent companies to scale back such initiatives, which have been attacked by many conservatives including U.S. President Donald Trump.

The case is City of Riviera Beach Police Pension Fund v Target Corp ( TGT ) et al, U.S. District Court, Middle District of Florida, No. 25-00085.