Adidas is facing a lawsuit from investors who claim that the company knew about the risks of its partnership with rapper, Ye (formerly known as Kanye West), long before his anti-Semitic comments were made public. The German sports giant cut ties with Ye in October 2020 after he made a series of hateful remarks. According to the lawsuit, which was filed in federal court in Oregon, senior executives at Adidas discussed the risks of continuing the partnership with the rapper as early as 2018. The complaint alleges that Adidas ignored the risks, and failed to disclose that Ye had made anti-Semitic comments to Adidas staff. Reports in subsequent years also ignored the risks of partnering with the rapper. As the relationship with Ye deteriorated, so did Adidas' shares, until the deal was finally terminated.
The lawsuit seeks to represent investors who bought Adidas securities between May 3, 2018 and Feb. 21. It also names ousted former CEO Kasper Rorsted as a defendant. According to reports, Adidas is considering selling Yeezy products and donating the profits to charity, in an attempt to offset the financial hit from the collapse of the alliance with Ye. However, the company has continued to accept shipments of Yeezy gear from suppliers who are still producing it. The last of the Yeezy products, with a retail value of €1.2 billion ($1.3 billion), have only recently arrived at Adidas warehouses.
Adidas has not yet responded to the lawsuit.