Adidas shareholders have filed a class action lawsuit against the company for failing to warn investors about the antisemitism and extreme behavior of Kanye West.
The lawsuit also alleges that Adidas did not take meaningful precautionary measures to limit financial exposure if the partnership ended. Shareholders claim that Adidas routinely ignored Kanye’s behavior in 2018, including his antisemitic remark and troubling comments about slavery.
The lawsuit does not name the rapper, but covers anyone who bought an Adidas share from May 3, 2018, when Ye made the slavery remark, until 2023. Adidas’ former CEO Kasper Rorsted and Financial Officer Harm Ohlmeyer are named as defendants.
Adidas ended its almost decade-long partnership with West in October 2022 after he wore a “White Lives Matter T-shirt in public and made antisemitic comments during a podcast taping. Adidas described the lawsuit as unfounded claims and said it would vigorously defend itself against them.
The company ended its partnership with West because it does not tolerate hate speech. Adidas revealed in February that it would lose $1.3 billion in revenue this year because of its inability to sell West’s Yeezy clothing and shoes.