Nike is facing a lawsuit after shutting down its NFT business, which it acquired in 2021 through RTFKT Studios. Investors, led by Jagdeep Cheema, claim they incurred substantial losses as demand for Nike-themed NFTs plummeted post-announcement of RTFKT’s closure. They argue they wouldn’t have purchased the NFTs if they had known they were unregistered securities. The lawsuit accuses Nike of a “rug pull,” leaving investors with worthless assets, and seeks over $5 million in damages for alleged consumer law violations in multiple states. Nike has not yet commented on the lawsuit.
Crypto Investors Sue Nike, Accuse Apparel Giant of Rug Pull After Abrupt Closure of Metaverse Business: Report
