Nike Hit with $5M Lawsuit Over Alleged NFT "Rug Pull"

Nike, the world’s largest sportswear brand, is facing a $5 million proposed class-action lawsuit accusing the company of violating consumer protection laws and abandoning investors in its sneaker-themed NFTs. The lawsuit, filed Friday in the U.S. District Court for the Eastern District of New York, alleges that Nike used its global brand power to promote NFT collectibles tied to digital studio RTFKT. The suit claims Nike executed a "soft rug pull" by winding down operations, leaving investors with devalued and illiquid assets. The plaintiffs argue that Nike’s sudden shutdown of RTFKT led to a collapse in demand for its

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