Nike sued for $5 million over its shutdown of NFT platform RTFKT

A proposed class lawsuit is asking Nike for $5 million in damages, claiming it broke consumer protection laws and various state unfair trade and competition laws.

Nike has been hit with a class-action lawsuit that accuses the sportswear giant of operating a rug pull for shuttering its non-fungible token (NFT) platform RTFKT in January. 

A group of RTFKT users led by Jagdeep Cheema claimed in the proposed class suit filed in a Brooklyn federal court on April 25 that they suffered “significant damages” as a result of Nike touting its sneaker-themed NFTs to gain investors, then shuttering the platform.

The suit claimed the NFTs were unregistered securities, as Nike sold them without registering with the Securities and Exchange Commission. It accused the company of using “its iconic brand and marketing prowess to hype, promote, and prop up the unregistered securities that RTFKT sold.”

Read more