Dec 4 (Reuters) - Target ( TGT ) has failed to persuade

a judge in Florida to dismiss a lawsuit that accused the

retailer of deceiving shareholders after its sales of

LGBTQ-themed merchandise for Pride Month sparked a backlash and

a customer boycott.

U.S. District Judge John Badalamenti in Fort Myers ruled

that the plaintiffs had presented enough information for now to

pursue claims that Target ( TGT ) misled investors about its efforts to

guard against social and political risks.

The lawsuit from investor Brian Craig claims that Target's ( TGT )

board focused only on activist groups' calls for diversity,

equity and inclusion (DEI) measures and overlooked potential

negative responses to the Pride campaign in May 2023.

Target ( TGT ) did not immediately respond to a request for comment

on Wednesday.

America First Legal, the conservative group that filed the

lawsuit last year, had no immediate comment.

Target ( TGT ) had urged Badalamenti to dismiss the lawsuit, arguing

that there was no evidence backing the allegations, that it had

warned investors about a potential DEI backlash, and that the

complaint was based merely on Craig's disagreement with the

company's business decisions.

America First filed the lawsuit in Florida federal court in

August 2023. The nonprofit group is headed by Stephen Miller, a

close adviser to U.S. President-elect Donald Trump.

America First and other conservative groups have accused

some major U.S. companies of undertaking diversity and inclusion

efforts at the expense of shareholders.

Target ( TGT ) pulled some LGBTQ-themed merchandise linked to Pride

Month last year, citing increased confrontations between

shoppers and employees and incidents of products being thrown on

the floor.