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NEWSLETTER 17, December 2003 Settlement
Reached: Kasky v. Nike Case |
Under California law, anyone can sue a company engaged in false advertising
and unfair business practices. In 1998 Marc Kasky, a concerned consumer, exercized
his right under this state law and filed a lawsuit in California Superior Court
against Nike. He alleged that Nike, in order to increase sales, violated the law
by making false statements about the working conditions in factories that make
its products. Nike, backed by dozens of lawyers and millions of dollars,
filed a motion to dismiss the complaint, claiming that corporations should have
the same right to free speech under the First Amendment as individual human beings.
On September 11th 2003, after lengthy court proceedings, a settlement was announced
by Nike and its lawyers Milberg Weiss. In this they said that: "The two parties
mutually agreed that investments designed to strengthen workplace monitoring and
factory workers programmes are more desirable than prolonged litigation. As
part of the settlement, Nike has agreed to make additional workplace-related programme
investmentsŠ totalling $1.5 million. Nike's contribution will go to the Fair
Labor Association (FLA) for programme operations and worker development programmes
focused on education and economic opportunity." |
