Nike to pay $6.4 billion for Adidas

NEW YORK — Nike Inc. on Monday will pay $7.8 billion to settle allegations it misclassified sales of its athletic shoes as non-branded products.

The U.S. Securities and Exchange Commission said the settlement includes $3.5 billion to resolve alleged violations of the Clayton Act, which prohibits companies from selling goods to consumers based on their association with another company.

Nike has been under fire since 2014 for its use of a “brand” designation to classify its sneakers as nonfactory goods, but the retailer said the classification was incorrect.

The SEC filed the lawsuit on behalf of about 4.2 million people in 2014 after the agency said Nike and its parent company Adidas Inc. were violating federal antitrust laws by marketing their athletic shoes through the “brand.”

In 2014, the U.K. consumer affairs watchdog, the Competition and Markets Authority, issued a report saying Nike was “leading the pack in the production of shoes with no brand and, in some cases, false or misleading marketing.”

Nike also said it made misleading claims about the effectiveness of its shoes.

The company also admitted that it had “failed to ensure that its sales, sales channels, marketing materials and sales promotions do not mislead consumers,” according to the SEC’s complaint.

The settlement will pay Nike $5.7 billion in total.

It is also expected to resolve an antitrust investigation into other companies selling Nike products, the SEC said.

In a statement, Nike said it has cooperated fully with the Commission and that the agreement “provides for a fair resolution.”

“We continue to be committed to being transparent and fair,” the statement said.

Nissan will pay a total of $3 billion.

The company said it will pay about $2 billion to the U,K.

and Australia.

The rest will be paid over the next five years, the company said.

The settlement is expected to close by the end of 2021.