Posted by on March 25, 2019 4:09 pm
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Categories: Economy

Update: Just minutes after lawyer Michael Avenatti tweeted his tease of a press conference tomorrow claiming Nike is involved in a college basketball scandal, Bloomberg reports that Avenatti was just charged by federal prosecutors in New York with attempting to extort millions of dollars out of Nike Inc. by threatening to release damaging information about the company, which did not meet his demands.

Avenatti is alleged to have told Nike that he would cancel a press conference critical of sports apparel company only if it paid an unidentified client $1.5 million, and hired him and another California lawyer to conduct an internal investigation for $15 million to $25 million.

Avenatti is accused of wire fraud and bank fraud. He was arrested Monday, prosecutors said.

CNN’s Erica Orden tweeted the details:

” SDNY is charging Michael Avenatti for “attempting to extract more than $20M in payments from a publicly traded company by threatening to use his ability to garner publicity to inflict substantial financial & reputational harm on the company if his demands were not met.””

According to the complaint filed in federal court, Avenatti told Nike attorneys by phone last week if his demands were not met, “I’ll go take ten billion dollars off your client’s market cap … I’m not f*cking around.”

And Nike shares are rebounding…

SDNY is having a press conference on the Avenatti charges at 2:30pm.

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As March Madness hits its stride, former Stormy Daniels’ lawyer Michael Avenatti has found another outlet for his unique legal capabilities. In a tweet, Avenatti warned:

Tmrw at 11 am ET, we will be holding a press conference to disclose a major high school/college basketball scandal perpetrated by @Nike that we have uncovered. This criminal conduct reaches the highest levels of Nike and involves some of the biggest names in college basketball.”

The reaction was instant with NKE shares falling to their lowest since early February…

This news comes after Nike shares have been sliding recently following weak domestic orders.

Developing…

 

 

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