Adidas investors have filed a class action lawsuit alleging the sportswear manufacturer was aware of the damage that Kanye West could cause the company but did not notify them.
The lawsuit states that Adidas’ former CEO, Kasper Rorsted, and CFO, Harm Ohlmeyer “intended to deceive” investors or “acted with reckless disregard for the truth” by not discussing problems between the company and West.
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The lawsuit also noted a report by the Wall Street Journal in November 2022 that said Adidas executives had discussed the risk of West’s behavior previously and had considered cutting ties.
It then cited a fall in Adidas shares following the report. The company’s credit rating was also downgraded early this year after it said it had $500 million in unsold Yeezy merchandise.
At its highest point, Adidas’ partnership with West was successful, with sales of Yeezy shoes reaching over $1 billion.
But their...
The lawsuit states that Adidas’ former CEO, Kasper Rorsted, and CFO, Harm Ohlmeyer “intended to deceive” investors or “acted with reckless disregard for the truth” by not discussing problems between the company and West.
50 Best Celebrity Bikinis Slideshow!
The lawsuit also noted a report by the Wall Street Journal in November 2022 that said Adidas executives had discussed the risk of West’s behavior previously and had considered cutting ties.
It then cited a fall in Adidas shares following the report. The company’s credit rating was also downgraded early this year after it said it had $500 million in unsold Yeezy merchandise.
At its highest point, Adidas’ partnership with West was successful, with sales of Yeezy shoes reaching over $1 billion.
But their...
- 5/4/2023
- by Alex Nguyen
- Uinterview
Adidas shareholders have filed a class action lawsuit alleging that the clothing company failed to minimize the fallout over their since-terminated partnership with Kanye West, which resulted in a sharp decline in Adidas’ stock.
The lawsuit, filed in an Oregon district court Friday and obtained by Rolling Stone, claims that Adidas was aware as far back as 2018 that West’s controversial comments could impact the stock price, yet remained tied to the rapper up until his string of antisemitic rants made the partnership untenable and left Adidas with $1.2 billion worth of unsold shoes.
The lawsuit, filed in an Oregon district court Friday and obtained by Rolling Stone, claims that Adidas was aware as far back as 2018 that West’s controversial comments could impact the stock price, yet remained tied to the rapper up until his string of antisemitic rants made the partnership untenable and left Adidas with $1.2 billion worth of unsold shoes.
- 4/30/2023
- by Daniel Kreps
- Rollingstone.com
Adidas has ended its partnership with Kanye West over his offensive and antisemitic remarks, the latest company to cut ties with the rapper and a decision that the German sportswear company said would hit its bottom line.
“Adidas does not tolerate antisemitism and any other sort of hate speech,” the company said in a statement Tuesday. “Ye’s recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect and fairness.”
The company faced pressure to cut ties with West, with celebrities and others on social media urging Adidas to act. It said at the beginning of the month that it was placing its lucrative sneaker deal with the rapper under review.
Read More: Kanye West Dropped As A Client By Johnny Depp’s Lawyer Camille Vasquez
Adidas said Tuesday that it conducted a “thorough review” and would...
“Adidas does not tolerate antisemitism and any other sort of hate speech,” the company said in a statement Tuesday. “Ye’s recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect and fairness.”
The company faced pressure to cut ties with West, with celebrities and others on social media urging Adidas to act. It said at the beginning of the month that it was placing its lucrative sneaker deal with the rapper under review.
Read More: Kanye West Dropped As A Client By Johnny Depp’s Lawyer Camille Vasquez
Adidas said Tuesday that it conducted a “thorough review” and would...
- 10/25/2022
- by Melissa Romualdi
- ET Canada
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