Equal Employment Opportunity Commission Chairman Andrew Lucas says the lawsuit alleges ‘racial discrimination’ against all Nike employees in ‘The Bottom Line.’
Nike is facing a new class-action lawsuit that accuses the company of failing to recoup costs related to taxes it passed on to consumers at higher prices.
In the proposed lawsuit, consumers argue that Nike should not be allowed to keep the “significant” refunds it received after the US Supreme Court ruled in February that the president does not have the authority under the International Emergency Economic Powers Act (IEEPA) to impose certain taxes.
Nike said it paid about $1 billion in fines for those actions. The plaintiffs say the company raised prices on some shoes by $5 to $10 and on other clothing by $2 to $10 to offset those costs.
“Nike has not been legally bound to commit to refunding excess tax-related fees to consumers who actually paid them,” the complaint, filed in federal court in Portland, Oregon, said.
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Nike is facing a class action lawsuit alleging the company failed to recoup tax-related costs passed on to consumers at higher prices. (stock / Stock)
“Unless restrained by this court, Nike stands to recover the same tax payments twice – once to consumers for higher prices and again to the federal government for tax refunds,” the complaint continued.
The lawsuit is one of many filed against major companies, including Costco, alleging they failed to return tax-related refunds to consumers.
| A ticker | Security | Finally | Change | Change % |
|---|---|---|---|---|
| NKE | The company NIKE INC. | 44.14 | -0.27 |
-0.61% |
More than 2,000 companies have filed lawsuits in the US Court of International Trade seeking to recover tariffs paid on imported goods.
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A woman carries a shopping bag as she walks past a Nike Inc. store. in Portland, Oregon, on Wednesday, April 24, 2013. (Natalie Behring/Bloomberg via Getty Images/Getty Images)
During a March conference call, Nike said its fiscal quarter ending in August 2026 may be the last time that pricing impacts net income.
The lawsuit comes weeks after Nike announced plans to lay off approximately 1,400 employees from its Global Operations team.
In a memo to employees, Chief Operating Officer Venkatesh Alagirisamy said the cuts would mainly affect the company’s technology sector in North America, Asia and Europe, which represents less than 2% of its global workforce.
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The Nike logo is displayed at a store in Manhattan on March 30, 2026, in New York City. (Zamek/VIEWpress/Getty Images)
Nike declined to comment to FOX Business.
FOX Business’ Eric Revell and Reuters contributed to this report.
