06:53 AM EDT, 04/28/2025 (MT Newswires) -- Nike ( NKE ) was hit with a lawsuit after shutting down its RTFKT crypto unit, leaving NFT buyers facing losses, Reuters reported Friday, citing a court filing.

Buyers led by an Australian resident alleged in Brooklyn federal court that the abrupt December closure wiped out demand for their Nike ( NKE )-themed digital assets, the news outlet reported.

The plaintiffs reportedly said they would not have purchased the NFTs if they had known they were allegedly unregistered securities and that Nike ( NKE ) would abandon the project.

The lawsuit seeks over $5 million in damages for alleged violations of consumer protection laws across New York, California, Florida, and Oregon, Reuters reported.

Nike ( NKE ) did not immediately respond to MT Newswires' request for comment.

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