In a move that could result in a major setback to Nike’s bid to be sold to the largest private equity firm in the world, the company is seeking to pay a record $300.9 million to a class of consumers who allege that it misled them and other consumers about the safety of its shoes.
In a settlement announced Friday, the U.S. Department of Justice will pay $2.7 billion to the class, and $4.3 billion to all claimants.
The settlement comes as the company looks to secure the future of its footwear business, as well as the long-term future of the US and its allies in the region.
The class action suit was brought by consumers in Ohio and Washington, D.C., and their families, alleging that Nike had misled them about the use of a synthetic material called PEDASOL, and also about its use of artificial fabrics.
“Nike has knowingly and intentionally deceived consumers and other persons regarding the use and safety of PEDASTOL,” according to the complaint.
Nike did not immediately respond to requests for comment. “
As a result of these false representations, many consumers have been injured, and have suffered serious financial and/or physical injury, and are unable to afford the products they have purchased.”
Nike did not immediately respond to requests for comment.
The lawsuit was brought against Nike by a group of former employees of the company, alleging negligence and breach of contract.
Nike, a private equity company based in New York, had been looking to sell to a private firm, led by Goldman Sachs, since November.
The company has also been exploring other options for the future.
According to Reuters, the deal was expected to be completed within days.
The suit claims that Nike misled customers by not telling them about a potential defect in the synthetic material PEDA.
Nike claims that the defect would be a problem for the company and its customers, but would not be fatal to its reputation.
A study commissioned by the company found that about 20% of its customers would report problems, according to Reuters.
Nike did tell consumers that the synthetic product would not cause any problems for their feet, but that the risk of the defect was limited, Reuters reported.
“We had an internal survey that was completed at the time that the company started looking to move forward with this,” Nike CEO Stephen Elop said at a press conference in April.
“And we had a lot of data and analysis that we had.
So we had good data.
But it wasn’t accurate, and it wasn