Nike didn't play Avenatti extortion game
Attorney Michael Avenatti was charged with trying to extort $20 million from Nike.
There is one game Nike won’t play; extortion.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NKE | NIKE INC. | 75.68 | -0.84 | -1.10% |
Following the arrest of Michael Avenatti, former attorney for adult film star Stormy Daniels and Trump nemesis, on allegations he tried to extort up to $25 million from Nike by threatening to link the sports apparel giant to a "major high school and college basketball scandal”, the company released the following statement:
“Nike will not be extorted or hide information that is relevant to a government investigation. Nike has been cooperating with the government’s investigation into NCAA basketball for over a year. When Nike became aware of this matter, Nike immediately reported it to federal prosecutors. When Mr. Avenatti attempted to extort Nike over this matter, Nike with the assistance of outside counsel at Boies Schiller Flexner, aided the investigation. Nike firmly believes in ethical and fair play, both in business and sports, and will continue to assist the prosecutors.”
Avenatti was arrested by FBI agents in New York City shortly after threatening Nike on Twitter and after he reportedly threatened to cut billions of the company's market cap.
U.S. prosecutors also said Avenatti is facing bank and wire fraud charges in California and coined his scheme as an "old fashioned shakedown."