Kanye West Fallout Sparks Class Action Lawsuit Against Adidas

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Adidas shareholders have filed a class action lawsuit alleging that the company failed to minimize the fallout from their partnership with Kanye West despite warning signs

The lawsuit, filed in an Oregon district court Friday and obtained by, claims that Adidas was aware as far back as 2018 that West’s controversial comments could impact the stock price, yet remained tied to the rapper up untilmade the partnership untenable and left Adidas with $1.2 billion worth of unsold shoes.

The class action lawsuit presents a lengthy list of controversial statements by West even before he went “DEATH CON,” and where they say Adidas failed to act to mitigate the potential damage to their brand. For example, when West said in a May 2018 interview that slavery “,” then-CEO Kasper Rorsted stood by the rapper, noting that while West made “comments we don’t support… [Kanye] has been and is a very important part of our strategy and has been a fantastic creator.

In the aftermath of that controversy, the lawsuit alleges that Adidas “ignored the risks of oversupply of Yeezy branded shoes in the event that the Partnership were to suddenly end, and in particular, if demand for the shoes were to fall due to any controversy surrounding West.” Adidas’ annual reports for the next three years — 2019, 2020 and 2021, years that encompassed both West’s MAGA hat-wearing days and

— similarly addressed the risk of remaining in business with West. The situation reached a point of no return in October 2022 when West began his antisemitic tirades, forcing Adidas to sever ties.

 

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