Lawsuit Filed Against Adidas For Deception Of Investors
The logo of the German sports equipment maker Adidas is pictured prior to the company’s annual press conference in Herzogenaurach, southern Germany on March 8, 2023. (Photo by Christof STACHE / AFP)
A class-action lawsuit filed against Adidas in U.S. District Court for the District of Oregon alleges that the company’s former CEO, Kasper Rorsted, and CFO, Harm Ohlmeyer, failed to disclose ongoing issues with former collaborator Ye (the rapper formerly known as Kanye West) that could harm the company and deceived investors.
The lawsuit alleges that Adidas was aware of Ye’s erratic behavior and controversial comments but did not warn investors. Although the partnership with Ye was once fruitful, cracks started to form as he made increasingly controversial comments, such as his 2018 comment that slavery “sounds like a choice.”
In October 2022, Ye wore a shirt with the slogan “White Lives Matter” and made antisemitic remarks, prompting Adidas to announce it would end production of Yeezy products and stop payments to Ye and his companies.
The lawsuit alleges that Adidas had been aware of the potential harm Ye could cause for years and failed to limit its financial exposure or make truthful statements. The suit seeks unspecified damages and payment of legal fees. Adidas has rejected the claims, and Rorsted has not commented on the matter.
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