TechFlow news, April 27 — According to Reuters, Nike is facing a class-action lawsuit from NFT holders over its abrupt shutdown of its cryptocurrency business. The plaintiffs, led by Australian resident Jagdeep Cheema, filed the lawsuit in Brooklyn federal court in New York, accusing Nike of causing a sharp decline in demand for their NFTs when it suddenly closed its RTFKT division in December 2024.
The plaintiffs stated that had they known these tokens were unregistered securities and that Nike would "suddenly pull out," they would not have purchased the NFTs at the prices they paid—or at all. The lawsuit alleges that Nike violated consumer protection laws in New York, California, Florida, and Oregon, and seeks damages exceeding $5 million.
According to reports, Nike acquired RTFKT in December 2021 and announced the closure of the business on December 2, 2024. Nike has not yet responded to the lawsuit.
