Nike To Settle Sexual Discrimination Lawsuit Hanging Over Its Head Since 2018

Forbes

01-04-2025

Nike has agreed to settle a sexual discrimination lawsuit brought by four ex-employees, ending a protracted legal battle that tarnished the company's reputation and allowing new CEO Elliott Hill to concentrate on revitalizing the company, reports the Oregonian.
Just weeks before the case was to go to trial, Nike legal representative, Felicia Davis of the Paul Davis law firm, said the plaintiff's claims have been resolved 'at a very high level,' though a final agreement has yet to be written.
The plaintiff's counsel, James Kan of Goldstein, Borgen, Dardarian & Ho, said in a videoconference before presiding Judge Amy Baggio that 'certain settlement terms' have been agreed to and that all parties are 'committed to working to getting all of those finalized.'
The agreement also includes a proposed class action settlement, though specifics about the size of the class have not been specified.
Judge Baggio ordered the parties to make a joint report to the court by April 11 regarding the proposed class settlement.
Terms of the settlement have not been disclosed. In the original complaint, Nike was accused of violating the Federal Equal Pay Act, the Oregon Equal Pay Act and the Oregon Equality Act. At the time, the plaintiffs didn't ask for specific monetary damages, according to the Oregonian. Instead, they sought the court to order Nike to pay its employees 'fairly' without regard to gender.
Throughout the proceedings, Nike affirmed it is committed to a 'workplace that is respectful and inclusive of all employees,' it shared in a statement with me, adding, 'We do not tolerate discrimination or harassment in any form.' After the sexual harassment and discrimination allegations came to light in 2018, Nike conducted a 'large-scale investigation' and 'took corrective action where appropriate,' which included the immediate departure of nearly a dozen senior executives, notably then Nike brand president Trevor Edwards, according to the Oregonian. His early retirement was reported not to be related to the inquiries. However, a number of his close executive team were shown the door.
The wide-spread allegations of sexual wrongdoings came to light after the results of an unofficial internal survey among female employees was presented to then CEO Mark Parker in early 2018. The results suggested the company ran as a virtual 'boys' club,' where women were 'devalued and demeaned' and sexual discrimination and harassment went unchecked. In May 2018, Parker held an unprecedented all-employee meeting and apologized for allowing a corporate culture to exist that excluded 'some staff' and failing to 'take seriously complaints about workplace issues,' the Wall Street Journal reported.
Despite the company's acknowledgment of bad past practices, it has fought to withhold specifics from the so-called Starfish survey, including the names of executives involved in alleged misconduct. In 2022, the Oregonian/OregonLive, Business Insider and Portland Business Journal petitioned the court to require Nike to release all previously sealed and unredacted materials in the interest of full disclosure. This resulted in ongoing court proceedings between the media outlets and Nike related to the sexual discrimination case, though not part of the announced settlement. Nike continues to fight to keep a lid on further disclosures.
As part of Oregonian journalist Matthew Kish's continued reporting on Nike, early last year, the plaintiffs' attorney mistakenly gave him unredacted versions of some documents previously sealed. After learning of the unintended leak, Magistrate Judge Jolie Russo ordered the Oregonian to destroy copies of those documents and not to disseminate the information in any way. However, she reversed that decision a month later, and her ruling was affirmed by another district judge. Nike appealed, claiming the Oregonian was an 'intervenor' in the sexual harassment case based upon the 2022 petition for full disclosure. Earlier this month, a panel of three judges in the 9th U.S. Circuit Court of Appeals ruled in favor of Nike that the Oregonian is 'bound by court orders sealing records.' Oregonian editor Therese Bottomly described that ruling as 'baffling and quite troubling on First Amendment grounds.' Claiming Kish did nothing improper and that the information he received was highly newsworthy to the public, the Oregonian plans to appeal the 9th Circuit Court's ruling with attorney Grayson Clary of the Reporters Committee for Freedom of the Press taking the lead.
Based upon the information that the Oregonian received, Kish reports that among the roughly two dozen executives named, some still remain with the company in senior or highly visible positions – 'contradicting what Nike has said in earlier public statements.'
While Nike continues the legal fight to keep records private, it is to be commended for putting the sexual discrimination and harassment lawsuit behind it. Now CEO Elliott Hill, who stepped into his position last October, can give full attention to the brand's 'Win Now' turnaround plan. There is much work to do after just reporting third quarter revenues declined 9%, and through the first nine months of the year, sales are off 9% to $35.2 billion. This coincided with a drop in Nike's reputation after last year's Olympics, according to corporate reputation management firm RepTrak. However, RepTrak vice president Stephen Hahn reports that Nike's reputation has started to rebound.
'In coming to a legal settlement and benefiting from the positive momentum of returning CEO Elliott Hill, who has a new vision and recommitment to focusing on the athlete, including women, we should expect a further positive improvement in Nike's reputation based on RepTrak data,' Hahn shared.
Nike Settles Sweeping Sex Discrimination Lawsuit (Oregonian, published initially 3/12/2025 and updated 3/26/2025)
Class-Action Lawsuit On Nike: 'Where Women Are Devalued And Demeaned' (Oregonian, 8/10/2018)
Inside Nike's Purge: More Than A #MeToo Moment (Oregonian, 7/17, 2018)
Timeline: Nike's High-Profile Executive Departures (Reuters, 5/11/2018)
Judge Orders Oregonian To Destroy Nike Lawsuit Documents (U.S. Press Freedom Tracker, 3/18/2025)
Unsealed Court Records name Top Nike Executives Accused of Sexual harassment, Misconduct (Oregonian, 3/21/2026)
Letter From The Editor: Ruling In Nike Case Harmful For Journalism And The Public (Oregonian, 3/30/2025)