Nike faces class action lawsuit accusing it of pocketing tariff refunds while charging consumers more

https://www.foxbusiness.com/economy/nike-faces-class-action-lawsuit-
accusing-pocketing-tariff-refunds-while-charging-consumers-more

Nike is facing a new class action lawsuit accusing the company of failing 
to refund tariff-related costs it passed on to consumers through higher 
prices.

In the proposed lawsuit, consumers argue Nike should not be allowed to 
keep "significant" refunds it may receive after the U.S. Supreme Court 
ruled in February that the president lacked authority under the 
International Emergency Economic Powers Act (IEEPA) to impose certain 
tariffs.

Nike has said it paid roughly $1 billion in tariffs on imported goods as a 
result of those actions. The plaintiffs allege the company raised prices 
on some footwear by $5 to $10 and on some apparel by $2 to $10 to offset 
those costs.

"Nike has made ?no legally binding commitment to return tariff-related 
overcharges to ?the consumers who actually paid them," the complaint, 
filed in federal court in Portland, Oregon, states.

"Unless restrained by this ?court, ?Nike stands to recover the same tariff 
payments twice — once from consumers through higher prices and again from 
the federal government through tariff refunds," the complaint continues.

The lawsuit is one of several filed against major companies, including 
Costco, alleging they failed to pass tariff-related refunds on to 
consumers.

Ticker	Security	Last	Change	Change %
NKE	NIKE INC.	41.88	-0.14	-0.33%

More than 2,000 companies have filed suits in the U.S. Court of 
International Trade seeking to recover tariffs paid on imported goods.

During a March conference call, Nike said its fiscal quarter ending in 
August 2026 would likely be the final period in which tariffs materially 
affect gross margins.

The lawsuit comes weeks after Nike announced plans to lay off roughly 
1,400 employees from its Global Operations team.

In a memo to staff, Chief Operating Officer Venkatesh Alagirisamy said the 
cuts would primarily affect the company’s technology division across North 
America, Asia and Europe, representing just under 2% of its global 
workforce.

Nike declined to comment to FOX Business.


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