Adidas faces lawsuit from Investors over Yeezy partnership with Kanye West

Adidas is facing a lawsuit from investors who claim that the company was aware of the risks of its partnership with Ye, formerly known as Kanye West, long before ending their collaboration. The investors allege that Adidas knew about Ye’s problematic behavior but failed to take precautionary measures to limit potential financial losses.

Adidas ended its partnership with Ye in October 2020 following his anti-Semitic remarks on social media and in interviews.

According to the complaint filed in federal court in Oregon, Adidas executives discussed the risks of continuing its collaboration with Ye as far back as 2018. Investors claim that the company’s annual report ignored the risks and failed to disclose that Ye made antisemitic remarks in front of Adidas staff.

Claudia Lange, vice president of external communication at Adidas, rejected the claims and said that the company would take all necessary measures to defend itself against them. The lawsuit seeks to represent investors who bought Adidas securities between May 3, 2018, and Feb. 21 and does not name Ye as a defendant. Since ending its partnership with Ye, Adidas has suffered significant financial losses, with Yeezy products remaining unsold, leading to an estimated $535 million hit to earnings and an operating loss of nearly $750 million in 2023 if the existing Yeezy inventory is not repurposed.

See also  Capturing the Beauty and Essence of the Natural World