Nike is being sued over the closure of the RTFKT NFT platform in December 2024

Nike (NYSE:NKE) is facing a lawsuit from a group of NFT buyers who claim to have lost hundreds of thousands of dollars when the sportswear giant shut down its RTFKT NFT platform.

The lead plaintiff, Australian investor Jagdeep Chima, alleges that Nike did not inform users about plans to cease operations of RTFKT in December 2024. After the closure, the value of NFTs sold under the Nike and RTFKT brands plummeted. Additionally, some non-fungible tokens stopped displaying images correctly, raising users' concerns that the assets would no longer be supported.

In their lawsuit, the plaintiffs claim they would not have purchased any NFTs if they had known they were unregistered securities. They also assert that they would not have invested if they had known Nike could shut the project down so quickly.

The plaintiffs accused Nike of violating consumer protection laws in several U.S. states, including New York, California, Florida, and Oregon. For this, they are seeking damages of at least $5 million.