The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Target Corporation (TGT) Investors

The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Target Corporation (“Target” or the “Company”) (NYSE: TGT) common stock between August 18, 2021 and May 17, 2022, inclusive (the “Class Period”). Target investors have until May 30, 2023 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

On May 18, 2022, Target released its first quarter 2021 financial results, disclosing that the Company’s revenue had declined by nearly 19%, while its gross margin had fallen by 4.3%. The Company explained that its practice of ordering inventory before it was needed, while previously considered “durable” and “flexible,” had now resulted in overstocked, unsellable inventory, taking up space and leaving Target unable to quickly pivot to meet changing consumer preferences and with an inventory increase of nearly $1.1 billion over the previous quarter. Furthermore, the Company stated that it expected the excess inventory to negatively affect earnings into the next quarter.

On this news, Target’s stock price fell $53.67, or 24.9%, to close at $161.61 per share on May 18, 2022, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) the true extent of Target's difficulty maintaining a balanced inventory of in-demand goods, despite its insights into changing consumer preferences; (2) that Target was severely impacted by changing consumer preferences; (3) that Target's inventory mix was significantly more sensitive to changing consumer preferences due to Target's practice of buying larger quantities ahead of season, and was therefore at significant risk of having to use markdowns to sell out-of-demand goods; and (4) that, as a direct result of these changing preferences, Target's inventory increasingly became out-of-balance and overweight in bulky and unsellable goods throughout the Class Period forcing Target to markdown its out-of-demand goods, thereby negatively impacting revenue; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased Target common stock during the Class Period, you may move the Court no later than May 30, 2023 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Target common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Target Corporation (TGT) Investors