Adidas sued by investors over Kanye West partnership!

Portland, Oregon - Adidas has been sued by investors over its now terminated partnership with Kanye West's Yeezy brand!

Adidas has been sued by investors over its now terminated partnership with Kanye West's Yeezy brand.
Adidas has been sued by investors over its now terminated partnership with Kanye West's Yeezy brand.  © Collage: SCOTT OLSON / GETTY IMAGES NORTH AMERICA / Getty Images via AFP & IMAGO / MediaPunch

Ye is not party to the lawsuit, which was filed over allegations that the German firm was aware of his problematic behavior years before it ended their partnership.

The investors also alleged that the company failed to limit financial losses and take precautionary measures to minimize their exposure.

Adidas in 2013 signed its deal with Kanye, who designed a line of trainers under the Yeezy brand that became hugely successful.

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However, the company in last October terminated its partnership with the rapper, citing some of his offensive controversial statements, including antisemitic social media posts.

Adidas in March reported a loss in its fourth quarter, due mainly to charges related to the termination of the Yeezy partnership, compared to last year's profit.

The company also projects unsold Yeezy products to reduce revenues by around €1.2 billion ($1.3 billion) and operating profit by around €500 million in 2023.

Adidas denies claims it ignored problem behavior

The lawsuit claims that the company was aware about previous questionable behavior by West, noting an alleged meeting in 2018 where Adidas management reportedly discussed the matter.

Meanwhile, responding to the allegations and lawsuit, Adidas said that it outright reject these unfounded claims, and will take all necessary measures to vigorously defend themselves against them.

The company last year also launched an investigation after reports that Kanye created a toxic environment at the company.

Cover photo: Collage: SCOTT OLSON / GETTY IMAGES NORTH AMERICA / Getty Images via AFP & IMAGO / MediaPunch

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