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Adidas Says It Didn’t Mislead Investors About Its Kanye West & Yeezy Partnership Debacle
Adidas wants a lawsuit over the company's Kanye West & Yeezy fallout dismissed, calling the fraud case filed by investors misguided and opportunistic.
Adidas AG is asking a federal judge to toss out a class-action lawsuit that claims the company violated securities laws by failing to warn its shareholders about Ye ’s offensive behavior, calling the fraud case “misguided” and opportunistic. Those disclosure filings included language warning that “improper behavior” by “partners in the entertainment industry” could ultimately have a “negative spill-over effect on the company’s reputations,” leading to “higher costs or liabilities” and could even “disrupt business activities.” “Although plaintiff alleges that Adidas knew of discrete instances of misconduct by Ye from years earlier, there is no legal obligation to accompany broad risk disclosures with a description of prior incidents of inappropriate behavior.”
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