(Liberty Bell) – The folks over at America First Legal decided to wade into the deep waters of social media platform Twitter — which is the digital version of a river flooded by a sewer of feces — looking for angry shareholders who have watched their investments into companies that sold out to woke marketing go down the toilet.
You know, like Bud Light after they did a campaign with transgender activist Dylan Mulvaney and Target after it was discovered they were selling “tuck friendly” women’s swimsuits among other LGBTQ products.
“ATTENTION: Are you a shareholder of @Target @Kohls @abinbev, or other companies that are promoting transgender, LGBTQ and PRIDE products and diminishing shareholder value? We want to hear from you,” the law firm stated in a post, as per The Western Journal.
“Newsweek wrote that the strategy appears to be to sue the companies over decisions that led to massive stock declines,” Jack Davis penned in the report. “Anheuser-Busch InBev, which makes Bud Light, has seen its stock price drop 9 percent this year, including a 5 percent drop Tuesday, according to MarketWatch.”
“The MarketWatch report cited figures from Bank of America based on Nielsen research covering four weeks that ended May 20. Data shows Anheuser-Busch volume dropped 17 percent across multiple brands, with Bud Light leading the decline with a 28 percent sales drop while Budweiser was down 16 percent, Michelob Ultra down 10 percent and Busch down 12 percent,” Davis added.
— America First Legal (@America1stLegal) May 30, 2023
The backlash against Target has also been massive and extremely devastating. The company’s support of Pride merchandise has caused a whopping 12.6 percent drop in the price of its stock over the course of just a few days.
And it seems other retailers have not learned anything from watching the financial destruction being wrought on both Target and Bud Light. Department store Kohl’s is also taking a pretty severe hit.
In the beginning of May, HSBC analyst Carlos Laboy spoke on the debacle with Mulvaney, bringing up questions about the wider ability of the company.
“Why did its U.S. leadership underestimate the risk of pushback given the recent experience of other firms? Is A-B hiring the best people to grow the brands and gauge risk?” he asked.
“If Budweiser and Bud Light are iconic American ideas that have long brought consumers together, why did these marketers fail to invite new consumers without alienating the core base of the firm’s largest brand? These questions are not trivial to the crisis and say a lot about the state of A-B’s marketing culture,” he noted.
Media outlet Newsweek commented on the work being done by America First Legal, positing that the organization could potentially be looking to do a “Stock-Drop Lawsuit.”
“In concept, such lawsuits claim a company did not fully discharge its fiduciary obligations to shareholders ahead of a decline in the value of their stock,” Davis explained. “Neama Rahmani, a former federal prosecutor, said that could be hard to prove.”
“Whether it’s a direct action by a shareholder or a derivative suit on behalf of the corporation, the plaintiffs will need to prove negligence, breach of a fiduciary duty, or some other basis for liability,” Rahmani remarked.
“It’s a stretch to argue that the officers and directors violated the standard of care by moving forward with inclusive LGBTQ marketing strategies. I can see a judge dismissing this type of lawsuit at the pleading phase if a lawyer tries to move forward,” he added.
Conservative columnist Jonah Goldberg made a case in a recent piece published by the Los Angeles Times that getting companies out of the realm of politics is actually a really good thing, going on to add, “in a culture where everything is politicized, everything is, well, politicized.”
“Bud Lighting is here to stay because boycotting has become a kind of reverse Veblen good. In economics, Veblen goods are things you buy not for their intrinsic worth but to display how much disposable income you have. A Marxist might call that ‘vice signaling.’ Bud Lighting is a way to telegraph to the world the kind of person you are by what you won’t spend money on,” he declared.
“The lesson for corporations should be to become more conservative, not ideologically but fiduciarily. Although I don’t like some of the excesses already on display in the era of Bud Lighting, if it results in corporations retreating from politics in favor of their core mission — shareholder value — America will be better for it,” Goldberg concluded.
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