Nike is facing a proposed class-action lawsuit in the Eastern District of New York, filed by an RTFKT buyer in Australia. The lawsuit alleges deceptive practices and unlawful trade practices related to RTFKT's NFT collections, claiming these assets are actually unregistered securities under U.S. law. The suit argues that Nike misled consumers through its marketing and promotion of these digital assets, which resulted in what is characterized as a ‘brazen rug pull.’ It also claims unjust enrichment, asserting that Nike profited at the expense of NFT buyers. The lawsuit cites multiple laws from New York, California, Florida, and Oregon. Although trading activity around RTFKT peaked in 2022, it saw significant decline by 2023, and the company plans to shut down operations by December 2024. The dispute is valued at a minimum of $5 million, although specific damages have not been stated.

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