Nike Sued Over NFT Losses After Shutting Down RTFKT Division
A group of investors has filed a class action lawsuit against Nike, seeking over $5 million in damages. The lawsuit accuses the company of causing financial losses by shutting down its Web3-focused subsidiary, RTFKT, and diminishing the value of associated digital assets.
According to court documents, investors claim that Nike promoted NFTs classified as unregistered securities, leveraging its brand strength and marketing strategies to attract buyers. With the closure of RTFKT, project support ceased, leading to a significant drop in the value of the NFTs.
The plaintiffs state that Nike failed to register these digital assets with the Securities and Exchange Commission (SEC) and did not inform investors about the associated risks.
In December 2024, Nike announced plans to scale down RTFKT's operations, launching a dedicated website to celebrate the brand’s past achievements. Investors are demanding a jury trial and cite violations of consumer protection laws in New York, Oregon, Florida, and California.
