I have noted for some time now in posts on this site the development of an ESG backlash, which has taken a variety of forms, including through both political action and litigation. For example, I recently noted two ESG backlash lawsuits that had been filed against major U.S. airlines. Now in the latest example of an ESG backlash lawsuit, a plaintiff shareholder has filed a securities suit against the retailing giant Target Corporation and certain of its directors and officers based on allegations that the defendants “betrayed both Target’s core customer base … and its investors by making false and misleading statements concerning Target’s Environmental, Social and Governance (ESG) and Diversity, Equity, and Inclusion (DEI) mandates that let to its disastrous children-and-family themed LGBT-Pride campaign.” A copy of the complaint in the new Target lawsuit can be found here.
Continue Reading Target Hit with ESG-Backlash Securities Suit
For some time now, many commentators, including me, have been predicting that cybersecurity-related litigation could become an important part of the D&O litigation environment. And that may yet happen. For now, however, the results in the recent cybersecurity-related cases have been, from the plaintiffs’ perspective, not particularly promising. On July 7, 2016, in the latest of these cases to hit the skids, District of Minnesota Judge Paul Magnuson, in reliance on the report of the special litigation committee appointed to investigate the claims and in the absence of opposition from the plaintiff, granted the motions of the special litigation committee and of the defendants and dismissed the consolidated cybersecurity-related derivative litigation that had been filed against Target Corporation’s board. As discussed below, the plaintiffs’ track record in this type of litigation has been poor, which does raise the question whether this type of litigation will become a significant phenomenon. A copy of Judge Magnuson’s order in the Target Corp. case can be found