On October 25, 2024, Labaton Keller Sucharow was appointed lead counsel in a securities class action against Nike, Inc. (NYSE: NKE) and certain Nike executives (collectively, Defendants). The action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and U.S. Securities and Exchange Commission Rule 10b-5 on behalf of a class of all persons and entities who purchased or otherwise acquired Nike Class B common stock from March 19, 2021, to June 27, 2024 (the Class Period).
Nike is a global athletic footwear and apparel company headquartered in Beaverton, Oregon, that designs, markets, and sells products for its Nike, Jordan, and Converse brands. In 2017, Nike began implementing its "Consumer Direct Offense" strategy, which focused on increasing innovation and direct connections with customers. Nike began reporting the financial metrics from Nike Digital and its retail stores as "Nike Direct." In connection with Nike's direct-to-consumer (DTC) strategy, Nike dropped nearly one-third of its sales partners by late 2020 and significantly reduced sales to other major retail clients. In a series of announcements from March 2021 to March 2022, Defendants repeatedly touted the purported strength of Nike's business model, particularly in Nike's digital and DTC strategies.
The Complaint alleges that throughout the Class Period Defendants misrepresented or failed to disclose that Nike's DTC strategy was unable to generate sustainable revenue growth and that Nike's purported competitive advantages were unable to protect it from intense competitive pressures after Nike largely disengaged from many of its wholesale and retail partners to focus on its DTC strategy. As a result of Defendants' wrongful acts and omissions and the decline in the market value of Nike's Class B common stock that followed the revelation of defendants' misrepresentations, the Plaintiffs and other class members suffered significant damages.
The case is In re Nike, Inc. Securities Litigation, No. 3:24-cv-00974-AN (D. Or.). Labaton Keller Sucharow represents Lead Plaintiffs Caisse de dépôt et placement du Québec and Deka Investment GmbH.
