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Adidas Beats Securities Fraud Class Action Over Kanye West Partnership Debacle

Adidas has beaten a class-action lawsuit filed by investors over the company's Kanye West deal, saying it failed to inform them of his bad behavior.

Adidas AG has won a court order dismissing a class-action lawsuit that claims the German sneaker giant violated securities laws by failing to warn its shareholders about Ye ’s offensive behavior. In a ruling Friday (Aug. 16), Judge Karin Immergut said she did not condone Ye’s conduct “erratic, inappropriate, and antisemitic” behavior and said it was “troubling” that it had happened at Adidas, but that it did not rise to the level of securities fraud. The split contributed to a loss of $655 million in sales for the last three months of 2022 and left Adidas holding $1.3 billion worth of unsold Yeezys and facing tricky questions about how to dispose of them responsibly.

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