Shareholders sue Adidas over aftermath of Kanye West partnership

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Adidas Kanye West class action lawsuit overview: 

• Who: Adidas shareholders have filed a class action lawsuit against the company following its October 2022 breakup with collaborator Kanye West. 
• Why: Shareholders argue Adidas ignored warning signs about West’s behavior and that its stock price ultimately dropped after the company cut ties with the controversial rapper following a series of antisemitic remarks.
• Where: Adidas apparel is worn by consumers nationwide.

Adidas harmed investors by allegedly failing to mitigate the damage caused by its strained relationship and ultimate parting of ways with collaborator Kanye West, a new class action lawsuit alleges. 

Shareholders argue Adidas was artificially inflating its stock price by ignoring warning signs surrounding its partnership with the troubled rapper and fashion designer, reports Rolling Stone. 

Adidas terminated its partnership with West last October following a series of public outbursts made by the Yeezy creator, including a number of anti semitic remarks made during interviews and on social media. 

Shareholders claim the decision to part ways with West left Adidas with $1.2 billion worth of unsold Yeezy shoes and caused its stock price to drop, something they argue the company was aware could happen from as far back as 2018, reports Rolling Stone. 

Adidas is reportedly accused of knowing West’s controversial statements could end up coming back to hurt them, but, instead of nipping the problem in the bud, waited until it had no choice but to end its partnership following West’s series of anti semitic rants. 

Former Adidas CEO stood by Kanye West following controversial comments about slavery, says class action

Shareholders have laid out a number of statements made by West that they argue Adidas should have acted upon, prior to him ultimately saying he wanted to go “death con (sic) 3 on Jewish people” in an October 2022 tweet. 

These statements include when Kanye, during a May 2018 interview with TMZ, said that slavery “sounds like a choice,” with shareholders noting that Adidas then-CEO Kasper Rorsted stood by the rapper at that time, reports Rolling Stone. 

Adidas stock reportedly dropped in November after the company parted ways with West, and then, after bouncing back, fell again earlier this year in February after it was announced that a failure to sell the Yeezy shoes would lower company revenue. 

A separate class action lawsuit was filed against Adidas in January over claims the company misled consumers into buying NHL jerseys they wrongly believed were the same quality as those worn by real NHL players.

Are you an Adidas shareholder who was financially injured by the company’s breakup with Kanye West? Let us know in the comments! 

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