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Boris Berian holds the U.S. flag after he won the men's 800-meter sprint final during the World Indoor Athletics Championships, in Portland in March.

(Associated Press)

Nike has dropped its controversial lawsuit against American runner Boris Berian.

A day after saying in federal court it would suffer "irreparable harm" if it allowed Berian to leave Nike and go instead to New Balance, Nike without elaboration filed a notice of voluntary dismissal late Thursday.

U.S. District Judge Marco Hernandez was set to rule next week on Nike's request for a preliminary injunction forbidding Berian from going to New Balance. It was clear from his questions in court Wednesday that the judge had his doubts about Nike's contention that it had matched New Balance's offer.

The case earned Nike withering criticism from parts of the elite track and field crowd who argued it was unfair for the giant Beaverton company to haul Berian into court on the eve of a potentially career-making series of competitions this summer at the Olympic Trials and the Summer Olympic Games in Brazil.

In a statement, the company said it continues to believe it would win the case were it to go to trial. "We also recognize that this is a significant time for Boris and in light of the judge's decision to delay the ruling until June 28th, the eve of the Olympic Trials, we decided to eliminate the distraction for Boris."

Nike was adamant that it had every right to to prevent Berian from moving to the New Balance brand as long as it matched New Balance's offer.

New Balance offered a $125,000-a-year base compensation contract to Berian, an up-and-coming star. The offer contained no so-called reductions, clauses that allowed the company to reduce Berian's payments if he failed to meet certain performance standards.

Nike claimed it matched New Balance's compensation offer. But Berian's lawyers submitted a copy of the Nike contract to the court that showed its deal was riddled with reduction clauses allowing Nike to cut Berian's take by 50 percent.

-- Jeff Manning

503-294-7606, jmanning@oregonian.com