Nike Faces Lawsuit Over NFT Business Closure

According to PANews, a group of buyers has filed a lawsuit against Nike Inc. in a New York federal court, alleging significant losses following the abrupt closure of Nike's RTFKT division, which was responsible for creating Nike-themed NFTs and other crypto assets. The proposed class-action lawsuit, led by Australian resident Jagdeep Cheema, claims that the sudden shutdown in December 2024 caused a sharp decline in the demand for the NFTs they held. The buyers argue that they would not have purchased these NFTs at the prices they did, or at any price, had they known the tokens were unregistered securities and that Nike would unexpectedly exit the market. The lawsuit accuses Nike of violating consumer protection laws in New York, California, Florida, and Oregon. While the exact amount of damages sought is unspecified, it exceeds $5 million.