Nike sues CLOT’s Edison Chen for breach of contract

Nike has filed a lawsuit against Edison Chen, founder of CLOT, and his company Juice Los Angeles for breach of contract. The company is claiming $126,615.68, an amount it says corresponds to “goods and services that Nike provided to Juice.”

The case (2:25-cv-07447) has been filed under the cause 28:1332 Diversity-Breach of Contract. Initially, court records mistakenly stated that the lawsuit amounted to more than $126 million, when in fact it is just over $126,000. The discrepancy was due to a clerical error.

The legal action comes more than a year after Chen ended his collaborations with Nike and began working with adidas, releasing models such as the CLOT Silk Gazelle and the CLOT Anthony Edwards AE-1.

CLOT was founded by Chen in 2004 in Hong Kong and began its relationship with Nike in 2006. Over the years, both parties developed numerous models, strengthening the brand’s presence in the Asia-Pacific region and expanding it globally. In 2023, CLOT began its collaboration with adidas.

Nike’s legal move comes after the company has taken a more vigilant stance with its network of collaborators, including actions against external figures such as designer Shoe Surgeon, with whom it recently reached a settlement following an initial $60 million lawsuit.