Confidential
Settlement – $1,500,000Judge
Court
San Francisco Superior
Attorneys
Plaintiff
Roderick P. Bushnell
(Law Offices of Roderick P. Bushnell)
Patrick J. Coughlin
(Robbins, Geller, Rudman & Dowd LLP)
Defendant
Facts
In 1997, Nike Inc. began a public relations campaign to improve its image regarding labor practices in foreign factories. It had been accused of committing several labor law violations in Asia and Southeast Asia by journalists and labor activists. In letters to newspapers and in public statements, Nike sought to portray itself as a conscientious and fair employer that cared for the welfare of all its employees. Nike made specific claims about employee benefits. It stated workers were protected from and not subject to corporal punishment and/or sexual abuse. Nike claimed its products were made according to local workplace safety and wage laws, and that Nike factory workers in Southeast Asia were paid twice the minimum wage in that region. It stated workers received free meals and healthcare. Nike further asserted that it operated morally according to the Good Works International report and Nike guaranteed a living wage for all workers who produced Nike goods.
Damages
The plaintiff sought an injunction to enjoin defendant from failing to disgorge all monies acquired by unlawful and unfair business practices; failing and refusing to undertake a public information campaign to correct any Nike statement or claim that the court finds misleading or deceitful; making misrepresentations regarding the working conditions under which Nike products are made, such as wages, hours, overtime, environmental, health and safety conditions; and the use of child labor to produce its products. The plaintiff also sought attorney fees and costs.
Result
In lieu of an injunction, the action settled for $1.5 million. The settlement proceeds will be paid to the Fair Labor Association, Washington D.C., for program operations and worker development programs on education and economic opportunity.
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