• Loading stock data...
Wednesday, June 25, 2025
Law

Adidas Wins Court Battle With Investors Who Say They Should’ve Been Warned About Kanye West

  • Investors argued executives knew about the rapper’s troublesome behavior as far back as 2018.
  • The judge said the company did not commit securities fraud, and Ye had been publicly worrisome before 2022.
Aaron Doster-USA TODAY Sports

A federal judge has sided with Adidas in a motion to dismiss a lawsuit claiming the company didn’t properly warn investors of worrisome behavior from longtime partner Ye (formerly Kanye West) before cutting ties with the rapper in October 2022 over antisemitic comments and generally erratic behavior.

Adidas suffered financially after halting the popular Yeezy shoe line, losing more than $600 million in sales in the final quarter of 2022. Investors claimed in the lawsuit that Adidas knew as far back as 2018 that Ye’s behavior could be a major problem, even bringing up a presentation to former CEO Kasper Rørsted that outlined the rapper’s issues and how to deal with them, including potentially ending the partnership.

But the judge sided with Adidas in Friday’s ruling, saying the company had not misled investors, and pointed out that Ye had exhibited questionable behavior publicly for years.

“This Court does not condone what Ye allegedly did. But the question before this Court is not whether to admonish Ye or hold Adidas morally accountable for Ye’s conduct. Rather, this Court is faced with a precise legal question: has Plaintiff sufficiently pleaded facts showing that Adidas misled investors and thereby committed federal securities fraud? On the current record before this Court, the answer is no,” wrote Karin Immergut, a U.S. District Judge in Oregon.

Investors have another chance to refile an updated case within 30 days, though Immergut wrote any attempt “would likely be futile.”

It’s another win for Adidas amid a troublesome year for the company, with whistleblowers in China calling out executives for corruption and embezzlement in June, and an ill-advised campaign with model Bella Hadid falling apart in July. Despite all of this, and the company’s first annual loss since 1992 last year, Adidas in late July announced a strong second quarter of 2024 with a net profit of $205.5 million.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Dec 28, 2024; Sunrise, Florida, USA; Montreal Canadiens head coach Martin St-Louis watches from the bench against the Florida Panthers during the third period at Amerant Bank Arena.

PE Firm Led by Ex-NHL Star Invests in CCM Hockey

The deal marks CCM’s second private equity investment within the last year.
Dec 24, 2022; Cleveland, Ohio, USA; Cleveland Browns quarterback Deshaun Watson (4) warms up before the game between the Browns and the New Orleans Saints at FirstEnergy Stadium

Unearthed NFL Arbitration Ruling Raises More Questions Than Answers

The NFL was cleared of collusion, but new questions have emerged.
exclusive

Fever and Bonner Heading for a Breakup? Here’s What We Know

The Fever are exploring options as DeWanna Bonner seeks a fresh start.
Mar 11, 2025; New Orleans, Louisiana, USA; New Orleans Pelicans guard CJ McCollum (3) reacts after a three-point basket against the Los Angeles Clippers during the fourth quarter at Smoothie King Center.

Wizards Acquire CJ McCollum to Set Up $100M in 2026 Cap Space

About $110 million will come off the Wizards’ books next year.

Featured Today

Mar 15, 2025; Fort Worth, TX, USA; UAB Blazers forward Yaxel Lendeborg (3) dribbles the ball upcourt against the North Texas Mean Green during the first half at Dickies Arena

NIL Is Shrinking the Pool of NBA Draft Entrants

Agents are now advising many players to stay in school.
Apr 24, 2025; Green Bay, WI, USA; Penn State Nittany Lions defensive end Abdul Carter on the red carpet before the 2025 NFL Draft at Lambeau Field
June 21, 2025

‘More Is More’: The Elite Luxury Jewelers Decking Out Athletes

Meet the elite group of luxury designers crafting the biggest statement pieces.
Dec 5, 2024; Miami, FL, USA; FIFA president Gianni Infantino presents the FIFA Club World Cup trophy during the Club Word Cup draw at Telemundo Studios.
June 15, 2025

Revamped Club World Cup Is FIFA’s Billion-Dollar Gamble

The revamped soccer event debuts amid controversy.
Jun 10, 2025; Nashville, Tennessee, USA; United States head coach Mauricio Pochettino stands during the anthem against the Switzerland during the first at Geodis Park
June 14, 2025

Gold Cup Is Complicated for USMNT—but U.S. Soccer Has Its Eyes on..

Uncertain tournament success isn’t fazing forward-looking U.S. soccer.
Apr 24, 2025; Inglewood, California, USA; Los Angeles Clippers guard James Harden (1) controls the ball against the Denver Nuggets during the second half of game three in the first round for the 2024 NBA Playoffs at Intuit Dome.

James Harden Sued for Negligence in Sexual Assault Case

Harden hosted the party where the alleged incident happened.
Jul 7, 2023; Bronx, New York, USA; New York Yankees third baseman Josh Donaldson (28) react after striking out during the fifth inning against the Chicago Cubs at Yankee Stadium.
June 23, 2025

Former Yankee Josh Donaldson Wins $222K in Lawsuit Against Landlord

Donaldson played the 2022 and 2023 seasons for the Yankees.
Jun 23, 2025; San Diego, California, USA; San Diego Padres right fielder Fernando Tatis Jr. (23) rounds the bases after hitting a solo home run during the ninth inning against the Washington Nationals at Petco Park.
June 24, 2025

Tatis Sues Big League Advance for ‘Predatory’ Future Earnings Deal

Tatis would owe $34 million from his current deal alone.
Sponsored

Hottest Matchups Following NFL Schedule Release

The NFL released the 2025 regular-season schedule, and anticipation is already building in the ticket marketplace with four months to go.
Jun 8, 2025; Brooklyn, Michigan, USA; NASCAR Cup Series driver Denny Hamlin (11) celebrates with his team, holding up three fingers, one for each of his victories at Michigan International Speedway, after winning the FireKeepers Casino 400.
June 18, 2025

Judge Urges Michael Jordan, Co-Plaintiffs to Settle With NASCAR

Jordan’s racing team filed a co-suit in October alleging antitrust practices.
Ippei Mizuhara
June 17, 2025

Ohtani’s Ex-Interpreter Ippei Mizuhara Reports to Prison After Delays

Mizuhara’s 57-month sentence was supposed to begin in March.
Feb 9, 2025; New Orleans, LA, USA; Kansas City Chiefs quarterback Patrick Mahomes (15) against the Philadelphia Eagles in Super Bowl LIX at Ceasars Superdome.
June 17, 2025

Former Chiefs Employee Sues for Racial Discrimination

Ramzee Robinson says the Chiefs paid Black employees less than white ones.
The BetMGM Sportsbook opened for business during the season opener between the Kansas City Chiefs and the Arizona Cardinals on the Great Lawn outside of State Farm Stadium.
June 17, 2025

18th-Century Law Fuels Legal Blitz on Sports Prediction Markets

Five new lawsuits accuse Kalshi, others of offering illegal sports betting.