Adidas Shareholders Sue Company Over Failed Partnership With Ye — Retail Bum

Sportswear giant adidas has become the target of a class action lawsuit filed by its investors for not acting on its troubles with rapper Kanye West fast enough.

The investors claim that the company knew about West’s problematic behavior for several years. Yet, the company failed to prepare for possible financial losses that could have risen from the end of the partnership.

The company severed its ties with West last October after the singer made antisemitic comments on Twitter, including one praising Adolf Hitler.

Prior to that, the company had a strenuous relationship with West as the singer blasted the company for copying his designs without his authority. Although adidas publicly criticized the artist for making hateful comments, the plaintiffs argue that the company’s problems with West go back to 2018, when West came under fire for saying that slavery was a choice.

And last year, West came under fire when several employees came forward and complained about working in a fear-driven and toxic work environment.

Despite these complaints, adidas did not launch an investigation into West’s conduct until after it had cut ties with him.

While it remains to be seen how the lawsuit will pan out, adidas, for its part, denies any wrongdoings.

“We outright reject these unfounded claims and will take all necessary measures to vigorously defend ourselves against them,” adidas said in a statement.

Originally published at https://retailbum.com on May 2, 2023.