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Nike shares put through wringer by Avenatti’s alleged extortion attempt and subsequent arrest

March 26, 2019

Nike Inc. shares fell sharply and then recovered most of their losses in afternoon trade Monday, after a drama-filled afternoon during which lawyer Michael Avenatti said he would unveil a major scandal involving the sporting-goods giant — and was promptly arrested.

Avenatti sent a tweet saying that said he would hold a press conference on Tuesday to disclose a “major high school/college basketball scandal” involving Nike NKE, +1.12% . Avenatti, who came to fame as the attorney for adult entertainment star Stormy Daniels in her litigation against President Trump (a Daniels tweet on Monday emphasized that she’d fired him), said: “This criminal conduct reaches the highest levels of Nike and involves some of the biggest names in college basketball.”

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