Nike sued for shutting down cryptocurrency business
According to Reuters, Nike Inc. (NKE. N) was sued on Friday by a group of buyers who purchased Nike themed NFTs and other cryptocurrency assets. The buyers accused the company of suffering significant losses after suddenly shutting down the business unit responsible for creating the aforementioned assets. In a proposed class action lawsuit filed in Brooklyn Federal Court in New York, a group of buyers led by Australian resident Jagdeep Cheema stated that the sudden closure of Nike's RTFKT division in December 2024 resulted in a sharp drop in demand for NFTs held by the company. The buyer group claims that if they had known in advance that these tokens belonged to unregistered securities and Nike would have "suddenly withdrawn", they would never have purchased these NFTs at the current price or any price. The lawsuit accuses Nike of violating consumer protection laws in New York, California, Florida, and Oregon, with a claim amount not specified but exceeding $5 million.