RIVIERA BEACH, Fla. — A 53-page lawsuit has been filed by the City of Rivera Beach Police Pension Fund (RBPPF).
It has to do with Target stocks, as Florida's new attorney general filed a federal court lawsuit against Target on Thursday, claiming the discount store chain "misled investors" by promoting diversity, equity and inclusion initiatives that prompted a backlash and hurt sales, ultimately costing shareholders.
WATCH: Lawsuit claims retailer "defrauded" the police pension fund
In this lawsuit -- lawyers for the RBPPF alleges Target's environmental, social and governance, (ESG) and diversity equity and inclusion (DEI) mandates had an impact on the worth of Target's shares.
It also cites the store's LGBT-Pride campaign that got pushback in 2023.
The lawsuit claims negligence stating that Target should've been aware of the fallout, and that Target failed to disclose risk of consumer boycotts caused by its ESG/DEI initiatives in its public fillings.
The lawsuit claims that the retailer "defrauded" the police pension fund into paying "inflated" prices for its stocks.
The document said the decline in Target's stock had gone down 13%, while the S&P 500 Index was up 50% during the same time frame.
It claims the bulk, if not entirety, of the underperformance began after the backlash from the 2023 initiatives that are still having an impact.
The city of Riviera Beach released this statement:
February 12, 2025
City of Riviera Beach Addresses Police Pension Fund Lawsuit Involvement
The City of Riviera Beach is aware of recent reports regarding the Riviera Beach Police Pension Fund’s involvement in a lawsuit against Target Corporation. It is important to clarify that the Riviera Beach Police Pension Fund operates independently of both the City of Riviera Beach and the Riviera Beach Police Department. The fund is managed by a separate governing board that independently makes all decisions regarding its investments and legal actions. The board ultimately decided to participate in and lead this class-action lawsuit.
The City of Riviera Beach remains committed to diversity, equity, and inclusion, which we consider fundamental principles of good governance. We actively work to ensure that all members of our community are valued and included in decision-making processes, programs, and opportunities.
Additionally, we uphold respect for all opinions and welcome productive discussions that contribute to the progress of our city. While we acknowledge and respect the decision made by the Police Pension Fund, we trust that they are acting in the best interests of their members and fulfilling their fiduciary responsibilities.
For any inquiries regarding the lawsuit, we encourage the public and media to direct questions to the Riviera Beach Police Pension Fund.
The city told WPTV that the that some of the Riviera Beach police officers do benefit from the pension's funds. As to how much and how many officers participate in the fund, city officials couldn't confirm.
In the documents, it lists the cost in shares that the RBPPF bought in 2022 versus when RBPPF sold them in 2023, figuring a loss of $28,561.30
The RBPPF is asking for compensation on damages.
WPTV reached to Michael Brown, the Chairman of the RBPPF who said he did not want to comment.
WPTV is working to hear back from Target officials on the lawsuit.
