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23 January 2026
DLA Piper secures pivotal ruling for Nike in NFT class action
DLA Piper obtained a significant victory on behalf of NIKE, Inc. in a putative class action in the US District Court for the Eastern District of New York, with the Court granting Nike’s motion to compel arbitration.
The lawsuit stems from plaintiffs’ holdings of Nike-themed non-fungible tokens (NFTs) created by Nike’s former subsidiary, RTFKT, Inc. After RTFKT announced in December 2024 that it would wind down operations, plaintiffs alleged that their NFTs lost value and constituted unregistered securities. As a result, plaintiffs asserted multiple state consumer protection claims.
Nike sought to enforce the arbitration agreement contained in the RTFKT Terms of Service – an agreement plaintiffs accepted when acquiring and using NFTs. On January 21, 2026, the Court ruled in Nike’s favor, holding that Nike could invoke the arbitration clause even as a non-signatory, and ordered the case stayed pending arbitration.
The DLA Piper team representing Nike comprised Partners Scott Wilson (New York) and Michael Fluhr (San Francisco), and Associates Rachael Kessler (New York) and Eric Hall (Los Angeles).
The lawsuit stems from plaintiffs’ holdings of Nike-themed non-fungible tokens (NFTs) created by Nike’s former subsidiary, RTFKT, Inc. After RTFKT announced in December 2024 that it would wind down operations, plaintiffs alleged that their NFTs lost value and constituted unregistered securities. As a result, plaintiffs asserted multiple state consumer protection claims.
Nike sought to enforce the arbitration agreement contained in the RTFKT Terms of Service – an agreement plaintiffs accepted when acquiring and using NFTs. On January 21, 2026, the Court ruled in Nike’s favor, holding that Nike could invoke the arbitration clause even as a non-signatory, and ordered the case stayed pending arbitration.
The DLA Piper team representing Nike comprised Partners Scott Wilson (New York) and Michael Fluhr (San Francisco), and Associates Rachael Kessler (New York) and Eric Hall (Los Angeles).