SGI USA reports that Nike, along with President and CEO John Donahoe and CFO Matthew Friend, is facing another proposed class action lawsuit, this time filed by Yagnesh Mehta in Oregon District Court.
The lawsuit alleges that Nike misled investors by concealing its problems with Nike Direct and the DTC strategy. Nike’s results were not satisfying for four consecutive quarters, but the defendants assured investors that their strategy was working, the lawsuit states. The plaintiff seeks class certification for those who purchased Nike Class B common stock between March 19, 2021, and June 27, 2024, and seeks damages and attorneys’ fees.
The lawsuit is similar to one filed last month.
