A class action lawsuit has been filed in the United States District Court for the District of Oregon on behalf of all persons who purchased or otherwise acquired the common stock of Nike Inc between December 20, 2000 and February 26, 2001 (the "Class Period").

The Complaint charges Nike and certain of its executive officers with violations during the Class Period, alleging that the defendants repeatedly issued materially false and misleading statements regarding its third quarter earnings and revenues.

The defendants alledgedly knew or recklessly disregarded the material facts that Nike was having problems since the summer with its demand and supply chain management system which caused it to sustain reduced revenues and profits in the third quarter.

The truth finally emerged on February 26, 2001, when Nike issued a press release entitled "Nike Revises Third Quarter and Fiscal Year 2001 EPS Guidance." In this release, Nike reported that it expects to earn between $0.34 and $0.38 per share for the third quarter ending February 28, 2001, versus its previously stated guidance of $0.50 to $0.55 per share.

Donald Blair, vice president and chief financial officer stated at a conference call on February 28, 2001 that "these supply chain issues resulted in significant amounts of excess inventory of some footwear models, while other models have been in short supply or delivered late." Also, during this time period, certain officers and directors sold their shares of Nike stock for proceeds in excess of $12m.

The plaintiff seeks to recover damages on behalf of Class members and, is represented by the law firms of Law Offices Bernard M Gross, PC, Savett Frutkin Podell & Ryan, PC and Grenley Rotenberg Evans Bragg & Bodie, PC having significant experience and expertise in prosecuting class actions.