Adidas Shareholders , Initiate Class Action Lawsuit , Related to Kanye West.
Adidas Shareholders , Initiate Class Action Lawsuit , Related to Kanye West.
The lawsuit claims that Adidas leadership was aware of the potential for brand harm due to Kanye West's volatile "personal behavior" ... ... but did not sufficiently warn investors.
A spokesperson for Adidas denied the accusations via a press statement.
We outright reject these unfounded claims and will take all necessary measures to vigorously defend ourselves against them, Statement, Adidas Spokesperson, via NBC News.
The shareholder lawsuit describes the immense popularity of the Yeezy brand.
The Yeezy shoes were extremely popular.
By 2019, sales of Yeezy shoes hit over $1 billion.
, Adidas Shareholder Lawsuit, via NBC News.
Further, Kanye West accumulated significant wealth as a result of the Partnership.
, Adidas Shareholder Lawsuit, via NBC News.
By September 2019, Forbes ranked him as the Number 1 highest-paid hip-hop star, largely as a result of the Partnership, Adidas Shareholder Lawsuit, via NBC News.
The shareholders contend that by not warning them as to the nature of West's mental health, .
... Adidas' leadership "intended to deceive" investors or "acted with reckless disregard for the truth.".
The lawsuit cites public statements made by Adidas CEO Kasper Rorsted that seem to disregard the potential for major controversy.
Rorsted also stated that West and the Yeezy footwear brand are a 'very important part of our brand from a revenue standpoint and how we promote our products.', Adidas Shareholder Lawsuit, via NBC News.
[Adidas] ignored serious issues affecting the Partnership [with Ye] and the resulting potential risk to shareholders, Adidas Shareholder Lawsuit, via NBC News.
The lawsuit goes on to cite how annual reports from 2019 through 2021 "otherwise failed to mention risks relating to the Partnership."
