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Nike is currently entangled in a collective legal battle stemming from its recent decision to terminate operations within the NFT market. As reported on April 27, 2024, by COINOTAG News, the lawsuit was instigated by Jagdeep Cheema, an Australian plaintiff representing a group of NFT holders frustrated by the abrupt cessation of Nike’s RTFKT division. Filed in the Brooklyn Federal Court, this lawsuit alleges that the company’s sudden withdrawal in December 2024 contributed to a significant decline in NFT demand.
According to demand, plaintiffs have contended that had they been aware of the status of these assets as unregistered securities, they would have refrained from purchasing them, or they would have done so at a substantially lower valuation. The legal action asserts violations of consumer protection statutes in multiple states, including New York, California, Florida, and Oregon, with claimants seeking damages exceeding $5 million. Nike acquired RTFKT in December 2021 before announcing its closure less than three years later.
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