Kaskela Law LLC is currently investigating potential breach of fiduciary duty claims concerning NIKE, Inc. (NYSE: NKE) on behalf of the company’s long-term investors.
Recently an amended securities fraud complaint was filed against NIKE on behalf of certain investors who purchased shares of the company’s stock between March 19, 2021 and October 1, 2024 (the “Relevant Period”). According to the complaint, during the Relevant Period, NIKE and several of the company’s senior executive officers “repeatedly touted to investors the purported continued success of NIKE’s key corporate strategy called “Consumer Direct Acceleration” (‘CDA’), which emphasized a digitally enabled direct-to-consumer (‘DTC’) business model. The CDA strategy, according to Defendants, had the purpose and effect of propelling long-term sustainable financial growth for the benefit of NIKE and its shareholders.”
As further detailed in the complaint, also during the Relevant Period, Defendants repeatedly, falsely assured investors that the CDA strategy was achieving its key objectives—including, for example, that NIKE had developed the technological capabilities and supply chain infrastructure necessary to effectively execute such DTC operations—and thus was succeeding in driving the promised sustainable growth. Unbeknownst to investors, however, the CDA strategy suffered from multiple, severe problems in key underlying areas—including NIKE’s failure to build out the critical DTC technological and supply chain capabilities—and thus was a ticking timebomb.” When Defendants’ misconduct was finally revealed over a series of partial disclosures of the truth, showing the extent of NIKE’s CDA strategy failures and their disastrous impact on the company’s financial performance, investors lost billions.
The investigation seeks to determine whether the members of NIKE’s board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct.
Current NIKE shareholders who have owned the company’s shares since at least March 19, 2021 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 – 0750, or by completing the form on this page, to receive additional information about this investigation and their legal rights and options.