Kessler Topaz Meltzer & Check, LLP Files a Second Securities Fraud Class Action Lawsuit Against NIKE, Inc. With Expanded Class Period – Lead Plaintiff Deadline Remains August 19, 2024

Published 5 months ago via Business Wire

The law firm of Kessler Topaz Meltzer & Check, LLP informs investors that the firm has filed a second securities fraud class action lawsuit against NIKE, Inc. (NYSE: NKE) (“NIKE” or the “Company”). On June 20, 2024, Kessler Topaz filed a class action lawsuit in the United States District Court for the District of Oregon against NIKE for violations of the federal securities laws on behalf of investors who purchased or acquired NIKE Class B common stock between March 19, 2021, and March 21, 2024 (the “Pembroke Action”). The action filed today in the United States District Court for the District of Oregon, captioned Mehta v. NIKE, Inc., et al., Case No. 3:24-cv-01150-AN (the “Mehta Action”), expands the class period pled in the Pembroke Action to include investors who purchased or acquired NIKE Class B common stock between March 19, 2021, and June 27, 2024, inclusive (the “Class Period”).

Kessler Topaz issued notice of the filing of the Pembroke Action pursuant to the federal securities laws which triggered the deadline of August 19, 2024 for any investors who purchased or acquired NIKE Class B common stock to seek to be appointed as a lead plaintiff representative of the class. The filing of the Mehta Action does not change the August 19, 2024, lead plaintiff deadline. The notice of the filing of the Pembroke Action can be accessed here: https://www.businesswire.com/news/home/20240620018308/en/Investor-Alert-Kessler-Topaz-Meltzer-Check-LLP-Files-a-Securities-Fraud-Class-Action-Lawsuit-Against-Nike-Inc.-and-Encourages-Investors-With-Losses-to-Contact-the-Firm.

If you suffered NIKE losses, you may CLICK HERE or go to: https://www.ktmc.com/new-cases/nike-inc?utm_source=PR&utm_medium=link&utm_campaign=nke&mktm=r

You can also contact attorney Jonathan Naji, Esq. of Kessler Topaz by calling (484) 270-1453 or by email at info@ktmc.com.

DEFENDANTS’ MISCONDUCT

The Pembroke Action alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts, about the Company’s business and operations. Specifically, Defendants misrepresented and/or failed to disclose that: (1) NIKE’s direct-to-consumer strategy was unable to generate sustainable revenue growth; (2) NIKE’s purported competitive advantages were unable to protect the Company from intense competitive pressures after NIKE largely disengaged from many of its wholesale and retail partners to focus on the Company’s direct-to-consumer strategy; and (3) as a result, Defendants’ representations about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis.

After the filing of the Pembroke Action, on June 27, 2024, NIKE announced its fourth quarter and full year 2024 financial results. The Company revealed a 2% year-over-year quarterly revenue decrease, including, inter alia, an 8% year-over-year quarterly revenue decline in NIKE Direct and a 10% year-over-year quarterly revenue decline in NIKE Digital. Defendant Donahoe later explained to investors that Defendants are taking “strategic shifts . . . including leadership and organization changes” to “position [NIKE] to compete and win.” Nevertheless, Defendant Friend disclosed that NIKE was expected to face significant headwinds through fiscal year 2025 which would cause NIKE’s full year 2025 revenue “to be down mid-single digits with the first half down high single digits.” Critically, Defendants further retreated from NIKE’s direct-to-consumer strategy by “reducing what we’re offering to consumers through our digital channel.” Given NIKE’s substandard financial performance and Defendants’ commentary about the Company’s financial outlook, market analysts at Barclays questioned the “long-term health of the Nike brand” as “[NIKE]’s strategy continues to increase in uncertainty.” Moreover, Neil Saunders, the managing director at GlobalData, also expressed an unsettled view of the Company, noting that NIKE’s “[m]anagement has tried to sell a story of improvement to investors, but is not prepared to back it up with positive forecasts.”

On this news, the price of NIKE Class B common stock declined $18.82 per share, or approximately 20%, from a close of $94.19 per share on June 27, 2024, to close at $75.37 per share on June 28, 2024. This stock drop represented the largest decline in the price of NIKE Class B common stock since 2001.

The Mehta Action includes all of the facts and allegations pled in the Pembroke Action as well as additional facts and information relating to the disclosures made by the Company on June 27, 2024.

WHAT CAN I DO?

NIKE investors may, no later than August 19, 2024, move the Court to serve as lead plaintiff for the class, through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages NIKE investors who have suffered significant losses to contact the firm directly to acquire more information.

CLICK HERE to sign up for the case or GO TO: https://www.ktmc.com/new-cases/nike-inc?utm_source=PR&utm_medium=link&utm_campaign=nke&mktm=r

WHO CAN BE A LEAD PLAINTIFF?

A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.

ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP

Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries.

For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.

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