Avenatti, Back on Twitter, Denies Charges and Keeps After Nike
Avenatti, Back on Twitter, Denies Charges and Keeps After Nike
(Bloomberg) -- California lawyer Michael Avenatti brushed aside accusations by federal prosecutors, tweeting to thank supporters after he was arrested in New York and charged with trying to extort millions of dollars from Nike Inc.
He also doubled down on his assertion that there was something wrong going on at Nike.
It was his first tweet since Monday morning, when he announced a press conference to unveil a case he claimed would show how “criminal conduct reached the highest levels of Nike.” He was arrested shortly afterwards as he arrived at the offices of Nike’s lawyers. Prosecutors said he told Nike he’d cancel that event in exchange for over $20 million for him and another lawyer, purportedly to conduct an internal investigation, and his client.
That tweet sent Nike shares down as much as 1.6 percent, nearing a two-month low. However the stock rebounded after the arrest and ended the day up 0.2 percent in New York. Nike said it reported Avenatti’s contacts to the prosecutors, with whom the company has also been cooperating with an ongoing investigation into corruption involving college basketball and “firmly believes in ethical and fair play.”
After posting $300,000 bond Monday evening, Avenatti said outside the courthouse that “I am highly confident that when all of the evidence is laid bare in connection with these cases, when it is all known, when due process occurs -- that I will be fully exonerated and justice will be done.”
He’ll return to California for another appearance in Santa Ana court, where he was also charged Monday. There he’s accused of stealing a client’s $1.6 million settlement and using it to cover expenses, as well as defrauding a bank to obtain over $4 million in loans.
To contact the reporter on this story: Heather Smith in New York at hsmith26@bloomberg.net
To contact the editor responsible for this story: Jeffrey D Grocott at jgrocott2@bloomberg.net
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