Nike Faces $5M Class Lawsuit
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Nike is under fire after a group of NFT buyers filed a class-action lawsuit, claiming the company duped them into investing in its now-defunct RTFKT digital collectibles.
The plaintiffs, led by Jagdeep Cheema, allege Nike hyped its sneaker-themed NFTs as valuable assets, only to pull the plug on the project months later—leaving investors with worthless tokens.
The lawsuit, filed in federal court last week, compares Nike’s actions to a “rug pull,” a crypto scam where developers abandon a project after taking investors’ money. It argues that Nike’s NFTs were unregistered securities, sold illegally without SEC oversight.
The plaintiffs are demanding $5 million in compensation, accusing Nike of deceptive marketing and unfair business practices.
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