Nike Facing Class-Action Lawsuit From People Who Purchased RTFKT NFTs

Last Friday, Nike found itself facing a lawsuit from owners of its RTFKT non-fungible tokens (NFTs). These individuals claim that Nike engaged in deceptive marketing practices and other misconduct. The lawsuit was filed in the Eastern District of New York and is demanding unspecified damages exceeding $5 million USD, citing violations of consumer protection laws in New York, California, Florida, and Oregon.

Under the leadership of Australian resident Jagdeep Cheema, the lawsuit alleges that Nike’s hasty shutdown of RTFKT led to a decrease in demand for buyers’ NFTs, resulting in what is colloquially referred to as having the rug pulled out from under them. The plaintiffs claim they would not have bought the digital assets if they had been aware that they were unregistered securities, according to Reuters.

Last year in December, Nike acquired RTFKT, intending to invest in this digital sneaker and collectibles marketplace, support and expand its user community, and strengthen Nike’s presence within this domain. However, in a recent announcement, Nike disclosed that it will be closing the platform, as they are reevaluating their focus and adjusting priorities for their upcoming phase of digital advancement.

On the topic of last Friday’s class-action lawsuit against Nike, neither Nike themselves nor Philip Kim, who represents the plaintiffs, have issued any comments regarding it at this time.

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2025-04-28 21:26