Adidas shareholders launch class-action lawsuit over Ye fallout

The suit alleges that Adidas officials “intended to deceive” investors by failing to disclose ongoing issues between the company and the artist formerly known as Kanye West.

HOLLYWOOD, CA - JUNE 28: (L-R) adidas CMO Eric Liedtke and Kanye West at Milk Studios on June 28, 2016 in Hollywood, California. adidas and Kanye West announce the future of their partnership: adidas + KANYE WEST. (Photo by Jonathan Leibson/Getty Images for ADIDAS) (Jonathan Leibson, 2016 Getty Images)

Adidas shareholders have launched a class-action lawsuit alleging the sportswear brand knew about the potential harm that the “personal behavior” of Ye — the artist formerly known as Kanye West — could cause the company, but failed to warn investors.

The lawsuit alleges that Adidas’ former chief executive officer, Kasper Rorsted, and chief financial officer, Harm Ohlmeyer, either “intended to deceive” investors or “acted with reckless disregard for the truth” by failing to disclose issues between the company and Ye.

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It was filed Friday in the U.S. District Court for the District of Oregon — Portland is home to the German company’s North American headquarters.

“We outright reject these unfounded claims and will take all necessary measures to vigorously defend ourselves against them,” a spokesperson for Adidas said in a statement. Rorsted did not immediately reply to a request for comment sent to an email address associated with him.

Read the full report from NBC News.


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