Analysis: Threatening a lawsuit is legal. But if Michael Avenatti engaged in misrepresentation, such as when he said he could ruin Nike’s reputation, that could be considered extortion.
Cevallos: Being disbarred is the 'least of' Avenatti's concerns, faces worse
A court considering whether Avenatti’s threats were lawful or extortionate would look at several factors. Avenatti allegedly tried to magnify the pressure on Nike by inflating the perceived magnitude of Nike’s potential exposure and the perceived likelihood that the exposure would result in massive liability for the company.
Ultimately, the courts focus on whether there is a real relationship between the original plausible claim of Avenatti’s client, and Nike’s fear of a catastrophic adverse result.
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