title: Nike Is Being Sued by NFT Investors Following the Closure of Its RTFKT NFT Business

Sportswear giant Nike is reportedly being sued by a group of investors following the closure of its non-fungible token (NFT) business.

Investors of Nike-themed NFTs and other crypto assets are banding together in a lawsuit against the company, according to a Friday report by Reuters.

The suit, which was filed in a New York federal court, alleges that the investors suffered significant losses after RTFKT Studios, the collectibles firm that was acquired by Nike last year, announced it was shutting down its NFT project in December.

According to the complaint, which was initiated by Australian resident Jagdeep Cheema, the investors claim that they would not have bought the NFTs had they known that the tokens were unregistered securities. To date, the legal status of NFTs is yet to be settled, and several lawsuits involve questions on whether or not these assets should be considered as securities.

According to the complaint, which was initiated by Australian resident Jagdeep Cheema, the investors claim that they would not have bought the NFTs had they known that the tokens were unregistered securities. To date, the legal status of NFTs is yet to be settled, and several lawsuits involve questions on whether or not these assets should be considered as securities.

The suit also accuses Nike of orchestrating a “rug pull”, or the sudden abandonment of a project that leaves investors with worthless assets.

The plaintiffs are seeking more than $5 million in damages for the alleged violation of consumer laws in New York, California, Florida and Oregon.

The investors, who bought their NFTs in New York, California, Florida and Oregon, are demanding restitution for their losses and other relief.

The plaintiffs are alleging that Nike misled them by failing to disclose material facts about its NFT project and its plans to wind down the initiative.

According to the investors, they suffered significant losses after RTFKT announced it was shutting down its NFT project and pulled the remaining liquidity from a pooler crypto asset known as Magma.

The startup, which is known for creating viral sneaker designs, memes and other fashionable digital collectibles as it ventured into the metaverse, announced in December that it was shutting down its project and returning remaining Magma to investors.

However, the investors say that the value of their NFTs dropped drastically after RTFKT announced it was shutting down its project and pulling liquidity from Magma.

According to the complaint, the investors are seeking damages for unjust enrichment, violation of consumer law and a claim under the Commodities Exchange Act.

The investors also accuse Nike of failing to disclose the true nature of its Magma tokens, which they say should be considered as securities.

According to the complaint, the investors are seeking more than $5 million in damages.

In a statement to Blockworks, a spokesperson for Nike said that the company had no further comment to make.