Issues aren’t going tremendous properly for Adidas proper now: It was estimated the attire firm would lose about $1 billion in gross sales after slicing ties with Kanye West, though the rapper and Adidas apparently reached an settlement to promote the remaining Yeezy stock. (In addition they not too long ago ended their under-performing Ivy Park partnership with Beyoncé). Now, there’s one other headache so as to add to the pile: Adidas is dealing with a lawsuit.
As USA As we speak experiences, Adidas shareholders have filed a lawsuit in opposition to the corporate, claiming they knew in regards to the dangers of working with West years earlier than ending their skilled relationship with him. The go well with alleges that “Adidas was conscious of Ye’s problematic conduct and did not take precautionary measures to restrict monetary losses if the partnership had been to finish.”
A 2018 annual report apparently “ignored severe points” relating to attainable danger to share holders by “usually alluding” to the dangers “somewhat than stating that the corporate had really thought of ending the partnership on account of West’s private conduct.”
In an e mail yesterday (April 30), Claudia Lange, vp of exterior communication at Adidas, wrote, “We outright reject these unfounded claims and can take all crucial measures to vigorously defend ourselves in opposition to them.”
Price noting is that West himself isn’t named as a defendant within the lawsuit.