Nike faces class action lawsuit accusing it of 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. 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.TRUMP RAMPS UP TARIFFS ON EUROPEAN CARS IMPORTED INTO US"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.More than 2,000 companies have filed suits in the U.S. Court of International Trade seeking to recover tariffs paid on imported goods.TRUMP SAYS KING CHARLES ‘GOT ME TO’ DROP WHISKY TARIFFS AFTER ROYAL VISITDuring a March conference call, Nike said its fiscal quarter ending in August 2026 would likely be the final period in which tariffs materially impact gross margins.The lawsuit comes weeks after Nike announced plans to lay off roughly 1,400 employees across 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.CLICK HERE TO GET FOX BUSINESS ON THE GONike declined to comment to FOX Business.FOX Business' Eric Revell and Reuters contributed to this report.Weiter zum vollständigen Artikel bei FOX Business Weiter zum vollständigen Artikel bei FOX Business