Nike Facing Class Action Lawsuit for Alleged NFT Deceptive Practices

An Australian buyer is suing Nike in a proposed class-action lawsuit, alleging deceptive practices and unfair competition related to its NFT collections through RTFKT. Key points include:

The lawsuit was filed in the Eastern District of New York.
Nike is accused of conducting a "brazen rug pull" after acquiring RTFKT in 2021.
Claims assert that RTFKT's NFTs qualify as securities under U.S. law.
Nike allegedly violated multiple state laws regarding deceptive trade practices.
The lawsuit cites "unjust enrichment," claiming Nike profited from NFT buyers' funds.
The dispute involves at least $5 million, although specific damages are not stated.
RTFKT's CloneX “Mintvials” reportedly generated over $80 million in revenue.
RTFKT announced plans to shut down in December 2024, three years post-acquisition.
CloneX NFT art temporarily disappeared due to a hosting issue but has since been restored.
A similar class-action lawsuit against Logan Paul’s CryptoZoo NFT game is ongoing.