Investors sue Adidas over Kanye West Yeezy deal
Investors have filed a class action lawsuit against Adidas, alleging executives knew about the problematic behavior of Ye, formerly known as Kanye West, for years before the company ended its partnership with the rapper.
Adidas cut ties with Ye in October after the rapper made a series of antisemitic remarks. In their suit, filed Friday, shareholders allege the company in 2018 knew about the risks of partnering with the rapper and failed to take precautionary measures to limit negative exposure.
"In the Personnel Risk section of the 2018 Report's discussion of risk, the Company extolled its commitment to having an equitable workplace, and its strategic workforce management process, known as 'People Strategy', while failing to discuss how it routinely ignored extreme behavior from Kanye West," according to the suit.
Adidas announced its partnership with Kanye West in November of 2013. The first Yeezys debuted in February of 2015. The shoes surged in popularity, even as the rapper came under fire in 2018 over remarks he made about slavery.
Last year, Yeezy accounted for about 10% of Adidas' annual revenue, analysts told CBS MoneyWatch in October. In February, the company said it expects to lose $1.3 billion in sales this year because Yeezy clothes and shoes will not be available.
While former Chief Executive Officer Kasper Rorsted and Chief Financial Officer Harm Ohlmeyer are named in the suit, Ye is not named as a defendant.
CBS News has reached out to Adidas for comment.