Investors are suing Adidas on the grounds that the company knew about Kanye West’s questionable behaviour years before it discontinued their collaboration.
Investors claim that the company failed to limit financial losses and did not take any precautionary actions to minimise their vulnerability.
The company, which is involved in sports wear, eliminated all its collaborations with the rapper. In response, Adidas comments, “We are rejecting these unknown claims, and we will take all powerful measures to defend ourselves.
The complaint does not include West. The rapper created a series of wildly popular trainers for Adidas under the Yeezy moniker.
After being left with Yeezy items worth tens of millions of euros that weren’t sold, Adidas later acknowledged that it might lose up to €700 million (£619 million).
In October last year, when the company ended its collaboration, it said that it was not able to handle any kind of unfair speech or anti-Semitism.
Investors, who filed a lawsuit against Adidas on Friday in the US, contend that Adidas was aware of West’s other dubious actions because they were brought up by former CEO Kasper Rorsted and other management.
Details of a supposedly held meeting in 2018 where Adidas allegedly discussed West were revealed by “The Wall Street Journal.” According to the report, senior officials discussed ways to reduce the chance that employees would interact with him as well as the possibility that the company would sever its relationship with the rapper.
Adidas fired West in October of last year, and since then, an investigation has been opened as a result of claims that he fostered a “toxic environment” within the business.
Adidas retorted that it was unclear whether the charges contained in the letter were accurate.
The “Anti-Defamation League” described it as “a racist retort to the Black Lives Matter campaign that first appeared in early 2015,” adding that it is a “white supremacist term.”
After making anti-Semitic slurs later in the month, West’s Twitter and Instagram profiles were banned.
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