Nike Sues Edison Chen for $126M Contract Breach

Nike has filed a lawsuit against Edison Chen in the United States District Court of California Central District. The cause is 28: 1332 Diversity–Breach of Contract with a judgment sum of $126,615,000.

The lawsuit is filed directly against Chen, not against CLOT or his partnership with adidas. CLOT has been a long-time Nike and Jordan Brand collaborator, with Chen’s design efforts spearheading more than 30 CLOT x Nike drop since 2006. Most recent was a collection in 2023’s “What The Dunk,” where he released a re-design of the Air Force 1. In October 2023, Chen announced his transition to adidas as a new creative partner, going on to debut his first collection with the brand the following February.

Months passed with no public acknowledgement of contention from either party until Nike filed the case last month. The suit in no small part due to a contract disagreement, though nothing Chen has worked on for adidas has been seen to have design overlap with prior Nike x CLOT releases. This, along with Nike’s filing of an exclusive nine-figure amount, is a clear indicator of their seriousness of the dispute. Per official case filings from @SneakerLegal on X, the only information given is case #, cause, and judgement sum. No details have been released.

Nike vs. Edison Chen represents one of the more high-profile name changes of sneaker culture’s recent history. With both parties under a legal agreement, it’s possible the conflict may settle under the table. In the event that both parties do not reach a settlement, the trial will be closely monitored.

Updates will be provided as new documents and official statements are released.

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