A recently filed securities class action in the District of Oregon’s Portland division accuses Nike Inc. of misleading shareholders about the financial impacts of its direct-to-consumer sales strategy. The lawsuit, brought by a pension plan for firefighters and police in Pembroke Pines, Florida, alleges that Nike executives provided false information regarding the benefits and financial forecasts of prioritizing direct sales over traditional retail channels.
The legal action, facilitated by Stoll Stoll Berne Lokting & Shlachter, Kessler Topaz Meltzer & Check, and Klausner Kaufman Jensen & Levinson, proposes a class consisting of individuals who purchased Nike Class B stock between March 2021 and March 2024. This timeframe covers from when Nike released its third-quarter financial results in 2021 until the company announced plans to scale back on the direct-to-consumer strategy. For more details on the litigation, you can access the complaint here.