Investors sue Adidas over Kanye West deal

Adidas faces a lawsuit from investors who assert that the company was aware of Kanye West’s controversial conduct long before ending their collaboration. The investors claim that Adidas neglected to contain financial losses and adopt preventive measures to mitigate their risk.

Last year, Adidas terminated its partnership with the designer and musician, known as Ye, after he made antisemitic remarks. In reply, Adidas stated, “We completely deny these baseless accusations.”

Adidas also asserted that it would “employ all necessary measures” to actively contest the allegations.

The rapper, West, is not a participant in the lawsuit. He created a highly successful line of sneakers under the Yeezy label for Adidas.

Following the conclusion of their partnership, Adidas has revealed that it may suffer losses of up to €700m (£619m) due to excess inventory of unsold Yeezy products.

In October of last year, Adidas stated, “Adidas has no tolerance for antisemitism or any other form of hate speech.”

On Friday, investors in the US lodged a lawsuit against Adidas, asserting that the corporation was informed of other problematic conduct by West, which were reportedly discussed by previous CEO Kasper Rorsted and other management personnel.

In 2018, The Wall Street Journal disclosed a purported meeting where Adidas executives discussed West. The article alleged that top officials deliberated on how to lessen the possibility of personnel engaging with him, as well as the prospect of the corporation severing ties with the rapper.

Adidas launched an investigation after reports that Kanye West created a “toxic environment” at the company following their split in October last year.

Rolling Stone magazine published parts of an open letter from Adidas employees who alleged that company executives knew about Kanye West’s “problematic behavior” but chose to ignore it.

Adidas stated that it was unclear whether the claims made in the anonymous letter were accurate.

Adidas stated that it considers the allegations made in the anonymous letter seriously and will conduct an independent investigation to address the matter immediately.

During a Paris Fashion Week show last October, models wore clothing featuring the slogan “White Lives Matter” designed by West.

According to the Anti-Defamation League, the phrase “White Lives Matter” is a white supremacist slogan that emerged in 2015 as a response to the Black Lives Matter movement.

In October last year, West’s Instagram and Twitter accounts were suspended after he made antisemitic remarks.

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By Ryan

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