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