The Cauley Geller Bowman & Coates law firm has announced that it has filed a class action in the United States District Court for the District of Oregon on behalf of purchasers of Nike common stock during the period between December 20, 2000 and February 26, 2001, inclusive.

The complaint charges Nike and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that on December 19, 2000, Nike announced favorable second quarter F01 results and told analysts the company was still on tract to report mid-teens earnings growth for F01.

As a result of management's positive statements, Nikes's stock price increased from $47.56 on December 19, 2000 to above $55 per share by December 27, 2000. As a result of the defendants' alleged false statements, Nike's stock price traded at inflated levels during the Class Period, increasing to as high as $60.0625 in January 2001. Defendants took advantage of this inflation in stock price, selling 401,288 shares of their Nike stock for proceeds of $20.96m.

Then on February 26, 2001, Nike admitted that its third quarter F01 results would be much lower than previously forecast due to problems implementing supply planning systems, which caused Nike to produce too much unpopular inventory and not enough popular inventory, and disclosed it had excess inventory, which would result in third quarter F01 earnings of less than $0.38 per share.

On these shocking disclosures, Nike's stock price declined to as low as $38.36 per share from $49.17 in its most recent trading session.