Nike Faces Class Action Lawsuit Over RTFKT Shutdown
Nike is facing a class action lawsuit after abruptly shutting down its crypto-focused subsidiary, RTFKT, leaving investors with significant losses tied to Nike-themed NFTs and digital assets. Plaintiffs, led by Australian investor Jagdeep Cheema, allege they were misled into buying what they now claim were unregistered securities, only to see their value collapse after Nike terminated the project in December 2024.
The lawsuit, filed in the Eastern District of New York, seeks over $5 million in damages, citing violations of consumer protection laws in New York, California, Florida, and Oregon. Nike had acquired RTFKT in 2021 to pioneer digital fashion collectibles, blending gaming and culture, but later announced its closure, citing ongoing creative influence.
Legal debates continue over the classification of NFTs as securities. While Nike has not commented on the suit, the case raises broader questions about corporate accountability in the evolving crypto space.