Adidas Investors File Lawsuit Claiming Brand Deceived Them Over Kanye West’s Destructive Behavior

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 relationship began to fracture over West’s increasingly controversial statements. He said in 2018 that slavery “sounds like a choice” because it had lasted “for 400 years.”

Rorsted responded in an interview with Bloomberg, saying there were “some comments we don’t support” but that West “has been and is a very important part of our strategy and has been a fantastic creator.”

In October 2022 at the Yeezy show at Paris Fashion Week, Ye wore a shirt with the words “White Lives Mater.” The rapper also made antisemitic comments on Twitter and Instagram, saying that he would go “death con 3” on “JEWISH PEOPLE.”

Adidas eventually decided to disassociate itself from West on October 25, 2022.