// Adidas investors are suing the sportswear giant claiming the company knew the risks surrounding its partnership with Kanye West.
// The shareholders also claim the company failed to minimise its financial losses occurred by the termination of the agreement
Adidas is being sued by investors claiming that the sportswear giant knew about the risks of its partnership with Kanye West long before it cut ties with the rapper.
The retailer terminated its agreement with West, who is known as Ye, in October last year after he made a series of antisemitic comments.
Investors claim that senior executives discussed West’s problematic behaviour and the risks it faced in continuing its relationship back in 2018.
During this period, West faced backlash over his comment that slavery “sounds like a choice” which, according the complaint, was overlooked by Adidas.
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At the time, former chief executive Kasper Rorsted said: “There clearly are some comments we don’t support. Kanye has been and is a very important part of our strategy and has been a fantastic creator”.
The shareholders allege the sportswear giant failed to minimise its financial losses or take precautionary measures to minimise its exposure “in the event that the partnership were to suddenly end, and in particular, if demand for the shoes were to fall due to any controversy surrounding West”.
Adidas, which expects to lose over £1bn from dropping the rapper, said: “We outright reject these unfounded claims and will take all necessary measures to vigorously defend ourselves against them.”
After the partnership ended in October, the retailer launched an independent investigation into reports Ye had created a “toxic environment” after staff wrote a letter claiming the rapper had made “sexually disturbing references when providing design feedback”.
The lawsuit covers investors who bought Adidas stock between 3 May 2018 to 2023.
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