Nike is suing Edison Chen, founder of CLOT, for breach of contract and is demanding over $126 million USD in damages. The lawsuit was filed more than a year after Chen ended his collaborations with Nike and started partnering with Adidas.
While the exact details of the breach remain unclear, the case highlights Nike’s increased efforts to protect its brand following a recent settlement with custom sneaker designer The Shoe Surgeon. According to multiple sources, including @SneakerLegal, the lawsuit (case number 2:25-cv-07447) cites breach of contract under diversity jurisdiction (28:1332), with Nike seeking $126,615,000 in damages.
Chen’s partnership with Nike began in 2006, two years after he founded CLOT in Hong Kong in 2004. Over the years, the brand gained strong popularity in the Asia Pacific region by blending Eastern heritage with modern aesthetics, and expanded globally through collaborations with major sportswear companies. However, in 2023, Chen switched alliances and launched products like the CLOT Silk Gazelle and CLOT Anthony Edwards AE-1 with Adidas.
Nike’s decision to sue Chen comes as the company tightens its control over its brand and collaborations, also targeting designers outside its immediate network. This move follows Nike’s recent settlement with The Shoe Surgeon, which saw the original $60 million claim reduced.
Stay tuned for updates as more information about the lawsuit emerges.
