Nike Faces Class Action Lawsuit Over RTFKT Project Discontinuation
Overview of the Lawsuit
A group of plaintiffs has initiated a lawsuit against Nike concerning the company’s decision to cease its virtual project, RTFKT. The lawsuit alleges that the buyers of digital assets associated with RTFKT feel misled, claiming they were unaware that the NFTs were considered “unregistered securities.”
Details of the Claims
Filed in the Eastern District of New York, the proposed class action seeks damages exceeding $5 million. The lawsuit cites violations of consumer protection laws across multiple states, including New York, California, Florida, and Oregon.
Nike’s Journey with RTFKT
Nike ventured into the NFT space by acquiring RTFKT in 2021, aiming to capitalize on the growing popularity of digital collectibles. However, the initiative struggled, similar to other ambitious projects like Starbucks Odyssey. On December 24, 2022, Nike officially announced plans to wind down RTFKT operations by the end of January 2023.
Implications for Buyers
The plaintiffs assert that had they been informed of the registrative status of the NFTs, they would not have purchased them. This has raised significant concerns regarding consumer rights and the nature of digital asset ownership.
Conclusion
This lawsuit represents a growing trend of legal scrutiny in the digital assets space, particularly concerning the nature of NFTs and their regulation. As the case unfolds, it may have widespread implications for the way digital assets are marketed and sold.
