Adidas sued by investors over Kanye West partnership

Adidas is being sued by investors claiming that the company knew about the risks of its partnership with Kanye West years before it ended.

Investors claim that senior executives discussed West’s problematic behaviour and the risks it faced in continuing its relationship back in 2018, according to the BBC.

The investors also allege Adidas failed to limit financial losses and take precautionary measures to minimise their exposure.

In response, Adidas said: "We outright reject these unfounded claims and will take all necessary measures to vigorously defend ourselves against them."

The sportswear brand ended its partnership with the designer and rapper, who is known as Ye, last year following offensive and antisemitic comments.

At the time, Adidas said: "We do not tolerate antisemitism and any other sort of hate speech.

"Ye’s recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect and fairness."

Since then, Adidas admitted that it could lose up to €700 million after being left with hundreds of millions of euros worth of unsold Yeezy stock.

It also launched an investigation into allegations of misconduct against West, after receiving an anonymous letter containing several allegations against the rapper last year.

Adidas said it was not clear whether the accusations made in the anonymous letter were true.

"However, we take these allegations very seriously and have taken the decision to launch an independent investigation of the matter immediately to address the allegations," it added.

Ye began working with Adidas in 2013 and the two parties formalised their relationship two years later in a partnership covering footwear and clothing.