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id: 693, Created by Stan Vick, Scout
Adidas (ADDYY) Kanye West Partnership Case
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- Adidas ended its partnership with Kanye West due to his anti-Semitism.
- S&P Global downgraded Adidas' rating.
- $ADDYY fell 4.62% and lost $1.27 billion of its capitalization
- Investors suspect the Company & its Leaders of misconduct that led to investment losses
On February 21, 2023, S&P Global downgraded Adidas' rating, among other things, stating that "ending the Yeezy partnership with Mr. West will have a stronger-than-expected hit on the group's operating performance in 2023".
On this news, the $ADDYY fell 4.62% and lost $1.27 billion of its capitalization, seriously damaging investors.
Earlier, on February 9, 2023, Adidas disclosed that terminating the partnership will lower 2023 sales by EUR 1.2 billion and operating profit by EUR 500 million compared with 2022.
On October 25, 2022, Adidas ended its Partnership with Kanye West due to his blatant and virulent anti-Semitism after weeks of public calls for a boycott.
Taking all the facts into account, Investors have reasons to suspect the Company, its Leaders, and its Partners of misconduct and failure to disclose, among other things, that:
- In addition to other misconduct, Kanye West made anti-Semitic comments in front of Adidas staff, and even suggested naming an album after Adolf Hitler;
- Adidas was aware of his behavior, and failed to warn investors that it was aware of that behavior, and had considered ending the Partnership as a result of it;
- Adidas failed to take meaningful precautionary measures to limit negative financial exposure if the Partnership were to end as a result of West’s behavior;
- Adidas overstated the risk mitigation measures it took with regard to Yeezy shoes in the event that it terminated the Partnership;
- As a result, Defendants’ public statements were materially false and/or misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
Failure to Disclose,
Breach of Fiduciary duty,
Depository Securities (ADS, ADR, GDR)
Shock Event Date
21 February 2023
Lead Plaintiff Deadline
27 June 2023