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5 Major Target Lawsuits: The Latest Legal Battles And Multi-Million Dollar Settlements In 2025

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The retail giant Target Corporation is constantly under legal scrutiny, and the period leading into late 2024 and early 2025 has seen an explosion of high-stakes litigation that could reshape corporate governance and consumer privacy standards. These recent legal challenges range from landmark shareholder disputes over Diversity, Equity, and Inclusion (DEI) policies to multi-million dollar settlements concerning employee wages and cutting-edge biometric data privacy claims. This article provides an in-depth, up-to-date look at the most significant legal battles Target is currently facing, detailing the core allegations, the entities involved, and the potential impact on the company’s operations and investor confidence as of December 19, 2025.

The sheer volume and diversity of the claims—spanning investor fraud, labor law violations, and consumer protection—highlight the complex legal environment large retailers must navigate. For consumers and investors alike, understanding these lawsuits is crucial, as they often lead to significant financial payouts, changes in business practices, and a clearer picture of corporate accountability in the modern retail landscape.

The Shareholder Rebellion: DEI Policies and Investor Fraud Lawsuits

One of the most politically charged and financially significant legal challenges Target is currently navigating is the class action lawsuit filed by shareholders concerning the company’s Diversity, Equity, and Inclusion (DEI) initiatives. This case is a crucial test of corporate social responsibility policies and their financial disclosure requirements.

Allegations of Misleading Investors and Stock Decline

The central claim of the shareholder class action lawsuit is that Target knowingly misled and defrauded investors by concealing the financial and reputational risks associated with its aggressive push of certain Pride-themed and other controversial DEI products and marketing campaigns.

  • Core Claim: Shareholders allege that Target executives failed to disclose the potential for significant consumer backlash, which ultimately led to a tangible decline in the company’s stock performance and market value.
  • Entities Involved: The lawsuit, often spearheaded by firms like Bronstein, Gewirtz & Grossman, LLC, covers investors who purchased Target Corporation (TGT) stock during a specific period—generally from August 2022 to November 2024.
  • Legal Theory: The case is rooted in securities law, arguing that the company’s statements and omissions regarding the financial risks of its DEI strategy constituted a breach of fiduciary duty and investor fraud.

The legal action, which has gained significant attention from groups like America First Legal, seeks damages for the losses shareholders incurred following the major stock price drop that occurred after the backlash became public. This lawsuit raises profound questions about the legal liability of corporate boards when social initiatives impact financial performance.

The Battle for Employee Wages: Multi-Million Dollar Labor Settlements

Target has recently faced multiple high-profile wage and hour lawsuits, resulting in significant settlements to compensate employees for uncompensated time. These cases underscore the ongoing legal scrutiny of large employers' time-tracking and compensation practices, particularly in distribution and warehouse settings.

$4.6 Million New Jersey Wage and Hour Settlement

A major development in 2025 was the finalization of a $4.6 million settlement with warehouse workers in New Jersey.

  • The Claim: The lawsuit alleged that Target violated the New Jersey Wage and Hour Law by failing to pay distribution center workers for time spent walking to and from their job stations before and after their shifts. This pre- and post-shift walking time was not counted as "hours worked."
  • Eligibility: Target employees who worked at a New Jersey distribution center after August 6, 2019, were eligible to receive a cash payment from the class action settlement.

The $1.85 Million Walking Time Dispute

In a separate but related case, Target workers also sought initial approval for a $1.85 million deal to resolve a similar wage lawsuit. This claim also centered on the denial of pay for time spent walking to work stations, demonstrating a systemic issue within the company's labor practices that falls under the umbrella of wage theft allegations.

The New Frontier of Litigation: Biometric Privacy Lawsuits

As technology advances, so do the legal challenges surrounding data collection. Target is currently defending a significant class action lawsuit alleging violations of a strict state-level data protection law concerning customers' biometric data.

The Illinois Biometric Information Privacy Act (BIPA) Case

A federal judge recently denied Target Corporation’s motion to dismiss a class-action lawsuit filed under the Illinois Biometric Information Privacy Act (BIPA). This is a critical development for data privacy advocates and the company.

  • The Allegation: The lawsuit alleges that Target collected, stored, and used customers’ biometric data—such as facial geometry or fingerprints—without obtaining the required informed consent or providing a publicly available retention schedule, a direct violation of BIPA.
  • Legal Significance: The court's decision to allow the case to proceed emphasizes the increasing legal risks associated with advanced surveillance and data collection technologies in retail environments. This case sets a precedent for how retailers must handle sensitive biometric information.
  • Data Privacy Issues: This legal battle highlights a growing trend of consumer class actions against major corporations for alleged misuse of personal and biometric data, following similar lawsuits against other technology and retail giants.

Consumer Protection and False Advertising Claims

Beyond labor and privacy, Target continues to face lawsuits related to consumer product advertising and financial services marketing, underscoring the need for rigorous compliance in all customer-facing operations.

Target Debit Card (TDC) Marketing Settlement

A $5 million class action settlement was reached involving allegations against Target concerning the marketing practices of the Target Debit Card (TDC).

  • The Dispute: The lawsuit challenged the way Target marketed its debit card, leading to allegations of misleading or deceptive practices.
  • The Outcome: In addition to the financial settlement, Target agreed to implement changes in its business practices regarding the processing of TDC transactions to ensure clearer communication with consumers.

False Advertising of Unlocked iPhones

Target also faces a class action claim alleging the store falsely advertised iPhones as “unlocked.” This is a classic example of a false advertising lawsuit where the product did not meet the advertised specifications, leading to consumer detriment.

Navigating the Target Lawsuit Landscape: What It Means

The constellation of recent Target lawsuits—encompassing shareholder litigation over DEI, massive wage settlements, and cutting-edge biometric privacy battles—paints a picture of a corporation facing legal challenges on multiple fronts. The outcomes of these cases have far-reaching implications.

The DEI-related shareholder lawsuit, in particular, is a landmark case that will influence how corporations disclose the financial risks of their social and political stances. Simultaneously, the success of the New Jersey wage claims reinforces the importance of meticulous compliance with state and federal labor laws, even down to the minute details of pre-shift activities. For the average shopper, the biometric privacy case serves as a stark reminder of the data privacy issues inherent in modern retail, raising questions about what personal information is being collected without their explicit knowledge or consent. As these legal battles continue to unfold in 2025, they will undoubtedly shape Target’s operational strategies, corporate governance, and commitment to consumer and employee rights for years to come.

5 Major Target Lawsuits: The Latest Legal Battles and Multi-Million Dollar Settlements in 2025
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