Nike Inflated Strength of Digital Platforms, Investors Claim

Nike Inc. artificially inflated its stock price by deceiving investors about the strength of the brand’s digital platforms and “consumer direct” strategy, according to a proposed class action lawsuit.

Nike stockholder Yagnesh Mehta filed the complaint in the US District Court for the District of Oregon Monday alleging the company violated federal securities law. Mehta is seeking class certification, compensatory damages, court costs, and attorneys’ fees, the complaint says.

Nike implemented its consumer direct strategy in 2017, which focused on increasing innovation and direct connections with consumers through its digital platforms, the complaint says. This involved dropping nearly one-third of ...