The Saga Continues As Adidas Is Sued By Its Own Investors Over Kanye West Situation
If you’re an executive at Adidas you’re probably asking yourself “When will it end”? The drama surrounding one-time design partner Kanye West seems to never end. In fact, it seems like it's just getting worse. First, it was the fallout from his incendiary comments that led to dissolving the partnership. Then it was the decision on what to do with $1.3 billion worth of products that cannot be sold under the original branding. Now, the brand is being sued by its own investors.
The class action suit filed in the U.S. District Court in Oregon alleges that top-level brass was not only aware of West’s tendency to make anti-Semitic remarks prior to entering into the arrangement with him. A Business of Fashion report states that Adidas did little to nothing to insulate the brand from an ongoing string of hurtful behavior that included making anti-Semitic comments directly to Adidas staff.
The investors who filed the suit claim that Adidas' lack of response to a string of problematic behavior put their financial security at risk. The financial impact that the situation has caused is undeniable with Adidas facing upwards of $1 billion dollars in potential loss.
If you’re an executive at Adidas you’re probably asking yourself “When will it end”? The drama surrounding one-time design partner Kanye West seems to never end. In fact, it seems like it's just getting worse. First, it was the fallout from his incendiary comments that led to dissolving the partnership. Then it was the decision on what to do with $1.3 billion worth of products that cannot be sold under the original branding. Now, the brand is being sued by its own investors.
The class action suit filed in the U.S. District Court in Oregon alleges that top-level brass was not only aware of West’s tendency to make anti-Semitic remarks prior to entering into the arrangement with him. A Business of Fashion report states that Adidas did little to nothing to insulate the brand from an ongoing string of hurtful behavior that included making anti-Semitic comments directly to Adidas staff.
The investors who filed the suit claim that Adidas' lack of response to a string of problematic behavior put their financial security at risk. The financial impact that the situation has caused is undeniable with Adidas facing upwards of $1 billion dollars in potential loss.