What You Need to Know About the Nike RTFKT Class Action Lawsuit
Lawsuits have become a common theme in the 2025 sneaker space, and the latest legal drama has just begun to unfold. Late last Friday, were sued in a proposed class action lawsuit over NFTs (non-fungible tokens) created through the brand's web3, (pronounced 'artefact') sub-line. The class action is led by Australian resident Jagdeep Cheema, who is seeking $5 million for victims over alleged violations of consumer protection laws.
Nike x RTFKT, Explained
In the early 2020s, RTFKT emerged as a pioneer in the web3 and NFT movement then gracing the internet. The incorporation of streetwear and sneakers into their designs had a big hand in their success, leading to their eventual acquisition by Nike for a hefty sum. RTFKT helped lead Team Swoosh’s web3 charge with creations like the , , and a plethora of NFTs. Late last year, it was announced that RTFKT would be ‘winding down’ (read about that ) leaving many of their punters in the lurch. While there’s been no concrete explanation for RTFKT's shuttering, we suspect new had a lot to do with it.
Why Are Nike Being Sued?
Just four months after Nike and RTFKT decided to wind down their partnership, they’ve been smacked with a colossal class action. The proposed lawsuit was filed in Brooklyn, New York on April 25, with owners of RTFKT cryptocurrency assets claiming they have suffered significant financial loss after the sub-line was shut down. According to , the plaintiffs said that they would never have purchased the NFTs at the prices they did (if at all) had they known the tokens were unregistered securities, nor that Nike would ‘cause the rug to be pulled out from under them’. Damages of more than $5 million are sought over breach of consumer protection laws in California, Florida and Oregon.
There's a significant hurdle for this group of plaintiffs to leap before the case gets underway: the legal status of NFTs, and whether or not they are in fact securities, is currently yet to be decided under US federal law.
Nike have made no comment on these events as yet, but keep it locked to Sneaker Freaker - we’re predicting plenty of updates.