Nike Faces Lawsuit Over Alleged Abandonment of RTFKT NFTs, Claiming Unregistered Securities and Significant Investor Losses
The post Nike Faces Lawsuit Over Alleged Abandonment of RTFKT NFTs, Claiming Unregistered Securities and Significant Investor Losses appeared on BitcoinEthereumNews.com. Nike is facing a class action lawsuit from investors who allege the company caused major financial losses by shutting down RTFKT, its Web3 subsidiary. The plaintiffs claim the sportingwear giant promoted unregistered securities through RTFKT NFTs and later abandoned the project without notice. They seek over $5 million in damages, arguing they would not have invested in the NFTs if they had known the risks involved with the assets. Nike’s closure of RTFKT ignites a class action, with investors alleging significant losses from unregistered NFTs, seeking over $5 million in damages. Nike Accused of Promoting Unregistered Securities Through NFTs According to court documents, Nike allegedly “rugpulled” the community by closing RTFKT and cutting off demand for the associated digital assets. This action has led to a substantial loss of investment for individuals who believed in the potential of Nike’s digital assets. The plaintiffs argue that Nike used its brand power and marketing expertise to promote what they describe as unregistered securities before suddenly abandoning the project. Claiming that the NFT project, at its peak, generated approximately $168 million, they highlight the unanticipated collapse of value post-closure. “Because The Nike NFTs derived their value from the success of a given promoter and project – here, Nike and its marketing efforts – investors purchased this digital asset with the hope that its value would increase in the future as the project grows in popularity based on the Nike brand,” the lawsuit stated. The lawsuit also emphasizes that promises of completing quests and unlocking limited-edition products were key motivations for purchasing the NFTs. With the collapse of RTFKT’s operations, these incentives evaporated, leaving investors with worthless digital assets. The plaintiffs maintain that Nike NFTs qualify as securities under federal law, arguing that Nike failed to register the digital assets with the US Securities…
The post Nike Faces Lawsuit Over Alleged Abandonment of RTFKT NFTs, Claiming Unregistered Securities and Significant Investor Losses appeared on BitcoinEthereumNews.com.
Nike is facing a class action lawsuit from investors who allege the company caused major financial losses by shutting down RTFKT, its Web3 subsidiary. The plaintiffs claim the sportingwear giant promoted unregistered securities through RTFKT NFTs and later abandoned the project without notice. They seek over $5 million in damages, arguing they would not have invested in the NFTs if they had known the risks involved with the assets. Nike’s closure of RTFKT ignites a class action, with investors alleging significant losses from unregistered NFTs, seeking over $5 million in damages. Nike Accused of Promoting Unregistered Securities Through NFTs According to court documents, Nike allegedly “rugpulled” the community by closing RTFKT and cutting off demand for the associated digital assets. This action has led to a substantial loss of investment for individuals who believed in the potential of Nike’s digital assets. The plaintiffs argue that Nike used its brand power and marketing expertise to promote what they describe as unregistered securities before suddenly abandoning the project. Claiming that the NFT project, at its peak, generated approximately $168 million, they highlight the unanticipated collapse of value post-closure. “Because The Nike NFTs derived their value from the success of a given promoter and project – here, Nike and its marketing efforts – investors purchased this digital asset with the hope that its value would increase in the future as the project grows in popularity based on the Nike brand,” the lawsuit stated. The lawsuit also emphasizes that promises of completing quests and unlocking limited-edition products were key motivations for purchasing the NFTs. With the collapse of RTFKT’s operations, these incentives evaporated, leaving investors with worthless digital assets. The plaintiffs maintain that Nike NFTs qualify as securities under federal law, arguing that Nike failed to register the digital assets with the US Securities…
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