Nike is facing a class action lawsuit in federal court in Portland, Oregon, for allegedly pocketing tariff refunds while increasing prices for consumers. The lawsuit claims that 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 should not retain the refunds it may receive. Plaintiffs argue that Nike raised prices on certain footwear by $5 to $10 and on apparel by $2 to $10 to cover the costs of tariffs, which totaled around $1 billion. The complaint emphasizes that Nike has made no commitment to return these overcharges to consumers. This lawsuit is part of a larger trend, with over 2,000 companies filing suits in the U.S. Court of International Trade to recover tariffs paid on imports. Additionally, the lawsuit comes shortly after Nike announced layoffs of approximately 1,400 employees, representing nearly 2% of its global workforce, primarily affecting the technology division across North America, Asia, and Europe. Nike has not commented on the lawsuit.