Summary
A court sided with Adidas in an appeal, ruling that the company did not mislead investors about its partnership with Kanye West. The investors claimed they lost money after Adidas cut ties with West due to his controversial behavior. The court found that the partnership's risks were obvious to investors.
Key Facts
- Adidas won an appeal against shareholders who said the company hid Kanye West's misconduct before their partnership ended in 2022.
- The court in San Francisco ruled that Adidas did not mislead investors about the risks of partnering with West.
- This decision follows a previous case dismissal, which the investors later appealed.
- Kanye West, known for Yeezy shoes, was criticized for making antisemitic comments and promoting conspiracy theories in 2022.
- The controversy led Adidas, Gap, and JP Morgan to end their business relationships with West.
- The breakdown of the Adidas and West partnership resulted in a significant drop in the company’s share price.
- Adidas had over €1 billion worth of unsold Yeezy products after ending ties with West.
- In 2023, Adidas announced plans to sell the remaining Yeezy products and donate part of the proceeds to anti-hate charities.
