Adidas Wins Court Appeal In Kanye West Partnership Fallout

Benzinga

A U.S. court ruled Adidas did not mislead investors who claimed the company hid concerns about Kanye West’s behaviour before their partnership collapsed in 2022. Shareholders said they lost money when Adidas cut ties with West after his antisemitic remarks, but the court said reasonable investors understand the risks of celebrity collaborations. The split triggered a sharp share-price drop in 2023 and left Adidas holding more than €1B in unsold Yeezy inventory.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:03Adidas won an appeal from shareholders who claimed the company had misconduct by Kanye West

00:07before their partnership collapsed in 2022, according to the BBC.

00:12A San Francisco court ruled that Adidas did not mislead investors

00:15who said they lost money after the company cut ties with West.

00:18Investors claimed Adidas hid concerns about West's behavior before their 2022 split,

00:24which followed his anti-Semitic remarks and conspiracy posts.

00:27The court said a reasonable investor would understand the inherent risks of celebrity collaborations.

00:32The split caused Adidas' share price to plunge in 2023

00:35and left the company with more than 1 billion euros in unsold Yeezy inventory.

00:40For all things money, visit Benzinga.com.

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