A class-action lawsuit filed against Adidas in the United States District Court for the District of Oregon claims that the company’s former CEO, Kasper Rorsted, and CFO, Harm Ohlmeyer, failed to disclose ongoing issues with former collaborator Ye (the rapper formerly known as Kanye West) that could have harmed the company and misled investors.
According to the lawsuit, Adidas was aware of Ye’s erratic behavior and controversial comments but failed to warn investors. Although the collaboration with Ye was once fruitful, cracks began to appear as he made increasingly controversial comments, such as his 2018 remark that slavery “sounds like a choice.”
In October 2022, Ye wore a shirt with the slogan “White Lives Matter” and made antisemitic remarks, prompting Adidas to announce that production of Yeezy products would cease and payments to Ye and his companies would cease.
Adidas was aware of the potential harm Ye could cause for years, according to the lawsuit, but failed to limit its financial exposure or make truthful statements. The lawsuit seeks unspecified monetary damages as well as legal fees. Adidas has denied the allegations, and Rorsted has not responded.
