Nike Sues CLOT’s Edison Chen for $126 Million in Breach of Contract

Los Angeles, California – Nike has filed a $126 million lawsuit against Edison Chen, the founder of CLOT, for allegedly breaching his contract. The lawsuit was submitted in the California Central District Court, making headlines regarding the brand’s ongoing legal affairs.

This lawsuit marks a significant turn in the relationship between Nike and Chen, who had previously collaborated on over 30 sneaker designs since their first joint project in 2006. The details of Chen’s contract with Nike have never been made public, and Nike has not disclosed specifics regarding the nature of the alleged breach.

Chen, who has been designing shoes for Nike for nearly two decades, transitioned to an exclusive partnership with adidas in October 2023, shortly after his last release with Nike in early 2023. Despite this sudden shift, both parties maintained a cordial stance until now, raising questions about the timing and implications of the lawsuit.

In his new role at adidas, Chen has already launched several successful sneaker collections, including a notable project involving Anthony Edwards‘ signature shoe. However, the current legal proceedings are generating curiosity about the authenticity of past collaborations and whether any elements have transferred into his current designs for adidas.

The case number assigned to the lawsuit is 2:25-cv-07447, indicating it falls under a diversity breach of contract claim. As of now, further details regarding the claims have not been revealed, leaving sneaker enthusiasts eager for updates.

With the lawsuit reported against Chen personally, not his business entity, many in the sneaker community are wondering what evidence Nike may have. More information will be forthcoming as the legal process unfolds.