Nike stock tanked, as he rang them up and tried to exact a $15-25m payout. According to the complaint filed in federal court, Avenatti told Nike attorneys by phone last week if his demands were not met, "I'll go take ten billion dollars off your client's market cap ... I'm not f*cking around.
Avenatti is alleged to have told Nike that he would cancel a press conference critical of sports apparel company only if it paid an unidentified client $1.5 million, and hired him and another California lawyer to conduct an internal investigation for $15 million to $25 million.
Then the SDNY moved in and arrested him.
Just minutes after lawyer Michael Avenatti tweeted his tease of a press conference tomorrow claiming Nike is involved in a college basketball scandal, Bloomberg reports that Avenatti was just charged by federal prosecutors in New York with attempting to extort millions of dollars out of Nike Inc. by threatening to release damaging information about the company, which did not meet his demands.