Nike is facing a lawsuit from people who bought its NFTs
1 min read
Summary
A class action lawsuit has been filed against Nike by a group of NFT investors who accuse the sportswear giant of causing them financial damage when it shut down its digital footwear company RTFKT.
The complaint, which was filed in a New York court, claims the company violated consumer protection laws in several US states, which contravened the Securities Act.
The plaintiffs claim they wouldn’t have bought Nike’s NFTs if they knew they were “unregistered securities”.
Nike acquired RTFKT in 2021 for an undisclosed seven-figure sum, with the intention of creating and selling NFT versions of its shoes in the metaverse, but shut the company down in 2022.
Since the closure, the RTFKT website has been maintained by a single employee.