Adidas has been constantly on the backfoot since its divorce from Kanye West over his anti-Semitic rants.
Now, the mega brand is under the target of its investors, as they alleged the company condoned Ye’s erratic behavior.
In the shareholders lawsuit against the company, they claimed the sportswear giant looked the other way to the rapper’s problematic attitude while “routinely ignoring” his behavior since 2018.
West’s past controversial remarks on slavery and anti-Semitic outburst were allegedly left unnoticed by the senior executives as they “ignored serious issues” affecting the Yeezy partnership, according to the lawsuit.
The first-class lawsuit doesn’t name the ex-Yeezy boss, but investors did not minced words against the footwear brand, who have been company shareholders since 2018, as they stated it “failed to take meaningful precautionary measures to limit negative financial exposure” if the partnership ended.
Reacting to the lawsuit and a string of accusations, the German sportswear giant released a strong-worded statement to CNN.
“We outright reject these unfounded claims and will take all necessary measures to vigorously defend ourselves against them.”
In 2022, Adidas ultimately parted ways with the Stronger rapper after the latter released scores of anti-Semitic comments.
“Ye’s recent comments and actions have been unacceptable, hateful, and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect and fairness,” the company said.
However, after severing ties with the father-of-four, the company did not find itself on a steady path.
Following the public separation, two exposés hit the reputation of the multi-billion company further.
First by Rolling Stone, detailing Yeezy former members’ allegations against the brand of being updated from Kanye West’s “problematic behavior” but still “turned their moral compass off.”
Secondly, Wall Street Journal throwing the final punch. The report spilled the beans on Adidas’ top head honchos mulling as early as 2018 about the risks attached to working with the Grammy winner.
Meanwhile, Adidas’ losses ran into billions as company CEO Bjørn Gulden revealed the company could incur a total loss of $750 million.