Ohio State Teachers’ Retirement System, Columbus, has reversed course and decided to seek lead plaintiff status in a class-action lawsuit against Target.
The $97.7 billion pension fund’s board at its March 19 meeting informed Ohio Attorney General Dave Yost of the decision to seek status, according to a Yost spokesperson.
The decision represents a stark course reversal for the pension fund, which five days earlier had informed Yost that participating in the lawsuit would not be a “prudent use of system resources at this time.” That rejection was penned by STRS interim executive director Aaron Hood in March 14 in response to a letter from Yost earlier that day.
Hood has said the pension fund’s loss totaling $5 million during the class action period fell below the minimum threshold recommended in its securities litigation guidelines established in its board policy. The guidelines state in part that “in order to provide for the efficient operation of the System, STRS Ohio will not typically consider taking an active role in securities cases in which the system’s losses are less than $10 million.”
Hood said in the letter: “I take these policies seriously and size alone is reason enough to reject this request.” He did, however, invite Yost’s staff to address the pension fund’s board in executive session at its March 19 meeting to state their case, which appears to have worked in Yost’s favor.
In a statement after the meeting, Yost said: “I’m grateful the STRS staff, the Board, and our office were able to work through the communication breakdown and after a full consideration of all issues we were able to move forward.”
Yost, a Republican who has announced his plan to run for Ohio governor in 2026, sent a letter to the STRS board on March 14 recommending the pension fund seek lead plaintiff status in the lawsuit by the April 1 deadline.
On Feb. 20, the $270.5 billion Tallahassee-based Florida board filed a lawsuit in U.S. District Court in Ft. Myers, Fla., against Target, alleging that its executives made misleading and false statement regarding the potential backlash and associated financial impact of the retailer’s LGBTQ+-themed pride campaign of 2023.
“Corporations that push radical leftist ideology at the expense of financial returns jeopardize the retirement security of Florida’s first responders and teachers,” said James Uthmeier, Florida attorney general and one of three SBA trustees along with Gov. Ron DeSantis and CFO Jimmy Patronis.
In his letter to STRS, Yost referenced his understanding that the pension fund would not have sought lead plaintiff status given the size of its loss of $5 million, or approximately 0.005% of the pension fund’s current total assets.
“There is no doubt that the possibility of recouping losses improperly sustained due to corporate fraud and malfeasance through a securities class action is one of these tools, regardless of the amount to be recovered,” Yost said.
