Investors suing sportswear giant Adidas over Kanye West deal
Investors claim Adidas was aware of Kanye West’s problematic behaviour years before it parted ways with him, alleging the firm failed to limit financial losses and implement precautionary measures to minimise their exposure.
Adidas ended its partnership with the designer and rapper, now known as Ye, in October last year following antisemitic remarks. West even had both his Twitter and Instagram accounts suspended over the controversial comments.
In response to the recent lawsuit, the firm said: “We outright reject these unfounded claims.” Since it parted ways with West, it has launched an independent investigation to address allegations the rapper created a “toxic environment” at the company.
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According to an open letter by Adidas staff members, bosses knew about the questionable behaviour by West but “turned their moral compass off”, Rolling Stone magazine reported. In response, the company said it was not clear whether the claims made in the letter were true.
West designed hugely popular trainers for Adidas under the Yeezy brand. But after being left with scores of unsold Yeezy products, the sportswear giant admitted it could lose up to €700 million ($770 million).
The rapper held a show at Paris Fashion Week in October last year, where models were seen walking down the ramp wearing clothing with the slogan “White Lives Matter“. According to the Anti-Defamation League, it is a white supremacist phrase that started being used in 2015 as a racist response to the Black Lives Matter social justice movement.
