Nike Execs Accused of Misleading Investors About DTC Progress in New Suit

June 21, 2024

A new lawsuit is accusing Nike of misleading investors about its purported success in its direct-to-consumer strategy.

A class action suit filed by Kessler Topaz Meltzer & Check, LLP on Thursday claims that Nike chief executive officer John Donahoe and Nike chief financial officer Matthew Friend failed to reveal to shareholders that the company’s “direct-to-consumer strategy was unable to generate sustainable revenue growth.” The suit also accuses the executives of failing to disclose that Nike’s competitive advantages did not “protect the company from intense competitive pressures after Nike largely disengaged from many of its wholesale and retail partners.” FN