Nike has been sued by a class action lawsuit over the sudden closure of its RTFKT division, which specialized in NFTs and digital assets. The plaintiffs claim that the decision led to significant financial losses, Reuters reports.
The lawsuit, filed in federal court in Brooklyn, New York, alleges that demand for their tokens plummeted after Nike announced it would shut down in December 2024. They also argue that they would not have purchased the NFTs at that price, or invested at all, if they had known the assets were unregistered securities.
Nike acquired RTFKT in December 2021, calling it a brand that is "cutting edge innovation to deliver next generation collectibles that merge culture and gaming." However, on December 2, 2024, the company announced the complete closure of RTFKT, noting that "innovation will live on in the many projects and creativity of the community."
The legal status of NFTs in the US remains uncertain, and litigation over whether they are securities is ongoing. Plaintiffs are seeking more than $5 million in damages for violating consumer protection laws in New York, California, Florida, and Oregon.