Nike Inc. shares fell, then recovered most of their losses, Monday, after duelling tweets from lawyer Michael Avenatti and court reporters citing federal prosecutors. Avenatti was the first out with a tweet that said he would hold a press conference on Tuesday to disclose a “major high school/college basketball scandal” involving the sporting goods giant. Avenatti, who until recently was attorney for adult entertainment star Stormy Daniels, said: “This criminal conduct reaches the highest levels of Nike and involves some of the biggest names in college basketball.” Just moments later, court reporters tweeted that federal prosecutors were preparing charges against Avenatti alleging he had tried to extort Nike by threatening to release damaging information unless they agreed to pay him and a client millions of dollar. The U.S. Attorney General for the Southern District of New York said it will hold a press conference at 2.30 p.m. Eastern to announce those charges. Separately, the U.S. Attorney for the Central District of California said it has arrested Avenatti over allegations he embezzled a client’s money in order to pay his own expenses and debts and also defrauded a bank by using phony tax returns to obtain millions of dollars in loans. “Federal law enforcement officials will provide details concerning today’s arrest of lawyer Michael Avenatti, who faces federal charges of wire fraud and bank fraud in the Central District of California,” it said in a release. A press conference is set for 11 a.m. Pacific Time, or 2 p.m. Eastern. Nike shares were down just 0.1% and are up 11% in the year to date, while the Dow Jones Industrial Average has gained 9%.