Nike faces $70m lawsuit from construction firms over claims it hasn’t paid them

Nike is facing a number of lawsuits totalling over $70 million from construction firms which claim they have not been paid for completing the company’s campus extension.

The expansion involved the construction of six new buildings at the sportswear giant’s 300-acre campus in Portland.

The expansion was first announced in 2013 and plans involved new office space, a fitness centre and a parking garage according to Business Insider.

While a number of subcontractors including glass installation companies and electricians have been left frustrated by the situation, a the new building has gone down well in the eyes of the company’s employees.

Nike downplayed the accusations by telling The Oregonian that “a project of this size and scope involves complexity” and it was “committed to seeing through the successful completion of our expansion.”

READ MORE: Nike to lose 160 million pairs of shoes after factory closure in Vietnam

The Oregonian reported that construction and design firms had filed more than $110 million in liens against the sportswear giant and the project’s general contractor Hoffman Construction Co., for unpaid bills.

Several of the recent claims have moved to the courtroom and Nike and Hoffman have been named in 10 civil lawsuits by subcontractor since January.

Subcontractors claim they were forced to do extra work, but they haven’t been paid for it.

In one lawsuit, a subcontractor claims it’s had negative cash flow for three years because of how long it’s taken to get invoices paid.

Lawyers for firm Dynalectric Co wrote: “Problems arose immediately on the project,” in the lawsuit.

“Construction commenced without the project design being completed or even sufficient to construct it.”

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