Adidas investors are suing the German sports retail giant for failing to address the behavior of rapper Kanye West, who formally cut ties with the company in October after he made a slew of antisemitic remarks. In a lawsuit filed Friday in Oregon, Adidas' investors claim that the company "routinely ignored extreme behavior" by Ye.
Adidas, its CFO Harm Ohlmeyer and its former CEO Kasper Rørsted are named as defendants in the suit. The filing also says that the company ended its partnership with the controversial rapper only "after weeks of criticism over its failure" to do so. Adidas denounced the legal action in a statement to USA Today, calling these claims "unfounded."
The lawsuit alleges that Adidas was aware of potential harm Ye could cause but failed to warn investors about it. In their heyday together, Adidas's partnership with Ye was incredibly fruitful—its Yeezy shoe and clothing collections quickly became streetwear favorites.
However, controversy arose when at an October 2022 Yeezy show during Paris Fashion Week; Ye wore a shirt displaying the slogan "White Lives Matter." The Southern Poverty Law Center has described this phrase as "a racist response to civil rights movement Black Lives Matter."
The suit also alleges that statements made by Adidas were “materially false and/or misleading at all relevant times” and accuses them of not tolerating antisemitism or any other hate speech.
In response to these allegations, John Smith (fictional name), an Adidas spokesperson said:
While both parties await further developments on this case, it highlights concerns around corporate responsibility pertaining partnerships between brands and celebrities—especially those whose actions can have negative consequences on a company's image and reputation.