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ADDYY.US
id: 693

Adidas (ADDYY) Kanye West Partnership Case

D. Oregon
Court
03 May 2018
Class period Start
21 Feb 2023
Class period End
27 Jun 2023
Lead Plaintiff motion deadline
  • 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:
  1. 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;
  2. 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;
  3. 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;
  4. Adidas overstated the risk mitigation measures it took with regard to Yeezy shoes in the event that it terminated the Partnership;
  5. 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.
Alleged Offence
Mismanagement
Failure to Disclose
Malpractice
Negligence
Breach of Fiduciary duty
Omissions
Suspected Party
Directors
Management
Influencer
Security Type
Depository Securities (ADS, ADR, GDR)
Trade Direction
Long
Shock Event Date
21 February 2023
Lead Plaintiff Deadline
27 June 2023
Collecting participants…

Adidas AG ADR

adidas AG, together with its subsidiaries, designs, develops, produces, and markets athletic and sports lifestyle products in Europe, the Middle East, Africa, North America, Greater China, the Asia...

    Ticker
    ADDYY.US
    ISIN
    US00687A1079
    Sector
    Consumer Cyclical
    Industry
    Footwear & Accessories
    Country
    USA
    Address
    Adi-Dassler-Strasse 1, Herzogenaurach, Germany, 91074