Adidas has been hit with a lawsuit for failing to limit the financial losses in its partnership with Ye, formerly known as Kanye West, USA Today reports. Investors, specifically those who bought Adidas securities between May 3, 2018, and February 21, 2023, claim the company was aware of the rapper’s behavior and its potential effect on their partnership since 2018.
In the suit, the investors allege the company “ignored serious issues” with the partnership in a 2018 annual report, which generally alluded to the risks “rather than stating that the company had actually considered ending the partnership” because of Ye’s behavior and excluded information about the antisemitic remarks Ye made in front of the Adidas staff.
Claudia Lange, vice president of external communication at Adidas, has since denied the allegations. “We outright reject these unfounded claims and will take all necessary measures to vigorously defend ourselves against them,” she said in a statement.
Adidas ended its partnership with Ye in October 2022, calling his antisemitic remarks “unacceptable, hateful and dangerous.” USA Today reports the termination led to a net loss of $540 million.
Copyright © 2023, ABC Audio. All rights reserved.