Monday, April 1, 2019

Nike's stock dips after Avenatti tweets of 'scandal,' recovers after he's arrested

Shares of Nike fell more than 1 percent on Monday following a tweet from California-based lawyer Michael Avenatti alleging Nike's involvement in a "major high school/college basketball scandal."

Nike's stock reacted negatively to the following tweet from Avenatti:

tweet

Following the tweet, law enforcement officials put out a statement that Avenatti was arrested and faces charged of wire fraud and bank fraud in the Central District of California.

The federal officials said there will be a press conference today at 2 p.m. EST.

Nike officials weren't immediately available for comment.

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