Nike is facing a lawsuit from people who bought its NFTs
- Nike is facing a lawsuit from customers who bought its NFTs (RTFKT) due to the company’s decision to wind down its virtual show project.
- The plaintiffs claim that Nike did not disclose that the NFTs were “unregistered securities” and accuse the company of causing them financial losses by suddenly removing the digital assets from sale.
- The proposed class action lawsuit seeks damages of over $5 million for alleged violations of consumer protection laws in New York, California, Florida, and Oregon.
- Nike had attempted to enter the NFT market in 2021 but ultimately abandoned its efforts, announcing plans to wind down RTFKT operations by the end of January this year.
- A single individual, Samuel Cardillo, has been maintaining the RTFKT project since Nike’s announcement, posting updates on the digital assets’ disappearance and reappearance.
A group of people sued Nike this week over its decision to wind down its virtual show project RTFKT last year. The buyers of the digital assets accuse Nike of causing “the rug to be pulled out from under them,” and say they wouldn’t have bought its NFTs if they’d known they were “unregistered securities,” reports Reuters.
Filed in New York’s Eastern District, the proposed class action lawsuit seeks “unspecified damages of more than $5 million for alleged violations of New York, California, Florida and Oregon consumer protection laws.”
Nike tried to jump into the NFT game by buying RTFKT in 2021. But, like Starbucks Odyssey, it never quite worked out and the company abandoned the idea, announcing in December via the RTFKT X account that it planned to “wind down RTFKT operations” by the end of January this year.
Since then, RTFKT has seemingly been maintained by a single person named Samuel Cardillo, who spent Thursday posting through the sudden disappearance (and later reappearance) of artwork for its CloneX NFTs project.