Nike Inc. is now caught in the crossfire. This legal duel—case no. 25-02305—follows the company’s recent announcement that it will shutter its crypto operations. The lawsuit, filed on Friday, argues that the shutdown stranded purchasers of these digital assets with digital wares of greatly reduced value. Jagdeep Cheema is an Australian resident and the named plaintiff in the class action Cheema v. Nike Inc. He is asking for more than $5 million in damages for the homebuyers affected by the defect.
The plaintiffs, represented by lawyer Phillip Kim, claim that Nike violated consumer protection laws in multiple states, including New York, California, Florida, and Oregon. The suit focuses on the abrupt termination of Nike’s crypto-related efforts, which has reportedly left digital asset holders nursing heavy losses.
At its core, the complaint is about Nike’s deceptive conduct that directly harmed consumers and violated state consumer protection laws. These statutes are designed to protect consumers from wrongful or misleading commercial conduct. The plaintiffs assert that Perenial’s abrupt closure of their crypto enterprise wiped out a large portion of the value from their digital assets almost overnight. As a direct consequence, they incurred enormous financial loss. Specifically, they are looking for more than $5 million in damages to pay for these financial damages and correct the legal violations.
The complaint, as filed today in the U.S. District Court for the Eastern District of New York. This strategic move takes the legal fight directly onto American soil. As the case progresses, the court will need to consider the arguments presented by both sides, examining the details surrounding Nike's crypto business closure and its impact on consumers. Additionally, the court will consider whether state consumer protection laws apply in the states listed in the complaint.
The outcome of Cheema v. Nike Inc. could have implications for other companies involved in the rapidly evolving world of cryptocurrencies and digital assets. If adopted, these guidelines would establish an unprecedented standard to hold businesses accountable in the way they handle shutting down crypto operations. It underscores their responsibility to protect consumer investments in this volatile market.
