Adidas is a little more than six months removed from parting ways with longtime collaborator Kanye West, and now, they find themselves on the receiving end of a class action lawsuit sparked by investors.
The lawsuit, which was filed Friday in the U.S. district court for the district of Oregon, claims that Adidas “routinely ignored” signs of West’s unpredictable behavior before their split last year, going back “as early as 2018.” Investors blame Adidas executives for turning their cheeks to some of Ye’s damaging statements years ago, notably his antisemitic remarks and comments about slavery being a “choice.”
While West’s Adidas Yeezy sneaker line generated tremendous revenue for the sportswear company and its investors, they feel the company “failed to take meaningful precautionary measures to limit negative financial exposure” should the partnership end abruptly.
That’s precisely the position Adidas finds itself in. Earlier this year, the German-based company announced that it could lose almost $1.3 billion in revenue because of its unsold Yeezy inventory.
The sportswear company ended its partnership with Kanye West last October after Ye called Adidas out, proclaiming, “I can say antisemitic [expletive], and Adidas cannot drop me.”
An Adidas spokesperson told CNN, “We outright reject these unfounded claims and will take all necessary measures to vigorously defend ourselves against them.”
Anyone who purchased a share of Adidas from May 3, 2018, to this year will be covered in the lawsuit.
Image courtesy of Vanity Fair
