Adidas has been sued by investors who claim the company knew about the risks of its partnership with Ye, formerly known as Kanye West, years before it cut ties with the rapper.
Investors claim lawsuiton Friday in federal court in Oregon, that Adidas knew about Ye’s problematic behavior and failed to take precautionary measures to limit financial losses if the partnership were to end.
The German sportswear giant ended its partnership with Ye in October following the designer’s anti-Semitic remarks on social media and in interviews. The company called Yi commentsUnacceptable, hateful and dangerous” on time.
According to the complaint, Which cites a report by The Wall Street JournalAdidas executives have discussed the risks of continuing its collaboration with Ye since 2018.
The investors claim that the 2018 annual report “ignored serious issues” with the partnership and potential risks to shareholders by “generally hinting” at the risks “rather than stating that the company has already considered terminating the partnership as a result of West’s personal conduct.”
According to the lawsuit, the company also failed to disclose Ye’s anti-Semitic remarks to Adidas employees.
“We completely reject these unfounded allegations and will take all necessary measures to vigorously defend ourselves against them,” Claudia Lange, adidas’ vice president of external communications, said in an email Sunday.
The lawsuit, which seeks representation for investors who purchased Adidas securities between May 3, 2018, and February 21, does not name Ye as a defendant.
Why did Adidas stop selling Yeezys?
Adidas ended its lucrative Yeezy deal last year over Ye’s anti-Semitic remarks, and is facing pressure to cut ties with the musician.
Since then, the company has bled millions of dollars as Yeezy products have not been sold. The company expects to reach a profit of approximately $535 million and an operating loss of approximately $750 million in 2023 if it decides not to reallocate existing Yeezy inventory.
“Freelance entrepreneur. Communicator. Gamer. Explorer. Pop culture practitioner.”
More Stories
‘The Office’ star Jenna Fischer reveals which celebrity had a ‘salty’ reaction to news of her cancer
Jenna Fischer talks about not having a ‘big shaving your head moment’ amid breast cancer diagnosis and support from Christina Applegate and Angela Kinsey
Blade Runner 2049 producers are suing Elon Musk over Robotaxi photos