Nike is facing a lawsuit from a group of individuals who purchased digital assets from its virtual shoe project, RTFKT. The buyers claim that Nike’s decision to shut down the project caught them off guard, with allegations that the NFTs they bought were actually “unregistered securities.” This news was reported by Reuters.
The lawsuit, filed in New York’s Eastern District, is a proposed class action seeking damages exceeding $5 million for alleged violations of consumer protection laws in New York, California, Florida, and Oregon.
In an attempt to enter the NFT market, Nike acquired RTFKT in 2021. However, similar to Starbucks Odyssey, the project did not succeed as planned, leading Nike to announce the discontinuation of RTFKT operations by the end of January this year.
