Nike Hit With $5 Million Lawsuit Over Alleged NFT Securities Violations
Nike faces a $5 million proposed class action lawsuit for allegedly abandoning NFT investors after shutting down its RTFKT subsidiary. Plaintiffs claim Nike promoted sneaker-themed NFTs tied to RTFKT, then executed a "soft rug pull," leaving investors with devalued assets. The lawsuit accuses Nike of violating U.S. law by promoting unregistered securities and misleading buyers about the nature of the NFTs. Plaintiffs assert they would not have purchased the NFTs had they known they were unregistered or that Nike would withdraw support. The complaint highlights Nike's failure to provide necessary disclosures and alleges violations of consumer protection laws in multiple states. Additionally, RTFKT's NFTs faced display issues due to a Cloudflare hosting downgrade, impacting visibility and access.
