Adidas is facing a class action lawsuit filed by its investors, who claim to have lost $180,000 due to the company’s partnership with rapper Kanye West.
The lawsuit accuses Adidas of routinely ignoring West’s anti-Semitic comments and extreme behavior, even after he tweeted, “I’m going death con 3 on JEWISH PEOPLE.”
The investors also claim that the company failed to warn them about West’s problematic behavior and the possibility of ending the partnership, even though executives were aware of it. Former CEO Kasper Rørsted and CFO Harm Ohlmeyer are also named as defendants in the lawsuit.
The lawsuit was filed in Oregon on behalf of HRSA-ILA Funds, which manages investments for the International Longshoremen’s Association. The investors allege that Adidas prioritized profits over its ethical responsibilities and the well-being of its investors. The lawsuit seeks damages for the losses incurred by the investors and calls for Adidas to improve its corporate governance and accountability.
Kanye West has a history of making controversial statements and engaging in extreme behavior, including his past anti-Semitic remarks. He returned to social media in March 2023 to disavow his previous comments. However, the investors claim that Adidas should have taken action to address his behavior earlier.
The lawsuit highlights the growing importance of corporate responsibility and accountability in the business world.
Investors and consumers are increasingly demanding that companies prioritize ethical practices and transparency, and failure to do so can result in legal and financial consequences.
