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:
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.