Adidas Is Being Sued By Investors Over Yeezy Drama

Adidas is facing a lawsuit from investors over the financial losses it has suffered because of the partnership with Kanye West.

Last year, Kanye West made antisemitic remarks that have caused many of his partnered brands to end their partnerships, including Adidas.

Investors have alleged that Adidas was aware of the risks of partnering with the controversial rapper, but decided to continue their partnership anyway.

CNBC TV 18 reported that investors sued Adidas in an Oregon courtroom recently over their decision to maintain the partnership.

Claims suggest that Adidas knew the risks associated with the partnership with Kanye West well before the issue with the antisemitic comments emerged.

A 2018 report suggests that Adidas decided to bypass the issues that were already arising in Ye's personal behaviour, and failed to disclose that they were considering terminating the partnership.

Investors believe that if Adidas had shared the info sooner, that a lot of the mess the brand finds itself in could have been avoided.

Adidas blames West directly for their financial loss of about $1.3 billion this year alone, after ending their partnership.

Adidas reportedly has more than $534 million worth of leftover Yeezy stock that they need to try and get rid of or repurpose.

Adidas is still considering what to do with the surplus stock, having even considered burning it or donating it at one point, which means they lose that $534 million altogether.

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