Nike 2003 Annual Report Download - page 13

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sought review in the California Supreme Court, which, on May 2, 2002, overturned the lower court rulings by a
four to three vote. The California Supreme Court made no ruling on the merits of plaintiff’s contention that the
Company had made false or misleading statements, but concluded that the alleged statements were commercial
speech and not entitled to the full protection of the First Amendment of the United States Constitution. The
Company filed a petition for rehearing before the California Supreme Court, which was denied on July 31, 2002.
The Company petitioned the United States Supreme Court for certiorari, which was granted. The United States
Supreme Court recently dismissed our petition for review, causing the case to return to the California Superior
Court. The Court stated that further development of the case before review by the United States Supreme Court
was needed. We expect that the case will now proceed through the California court system with discovery,
motions and perhaps trial in the same fashion as other cases proceed through the courts. Ordinary discovery and
much motion practice have not occurred in the trial court. The California Supreme Court noted that the
Company’s legal challenges to the case other than the one it ruled on remain open for consideration. Based on
information currently available, we do not anticipate that the action will have a material financial impact.
Item 4. Submission of Matters to a Vote of Security Holders
No matter was submitted during the fourth quarter of the 2003 fiscal year to a vote of security holders,
through the solicitation of proxies or otherwise.
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