Adidas Defeats Class-Action Lawsuit About Ye's Inappropriate Acts

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Adidas has defeated a class-action lawsuit from investors that accused the company of failing to notify them about Ye's "offensive and inappropriate acts."

Judge Dismisses Class-Action Lawsuit Against Adidas

On Aug. 16, Judge Karin J. Immergut shot down the case in United States District Court for the District of Oregon following a year of litigation. Judge Immergut sided with the shoe giant, citing the plaintiffs' inability to ultimately prove that Adidas should be held liable for Ye's actions hurting the company's bottom line.

"In sum, Plaintiff has failed to sufficiently plead that Adidas’s Business Partner Risk disclosures, its other risk disclosures, and DEI statements were materially misleading," reads the court ruling, which was obtained by XXL on Monday (Aug. 19).

XXL has reached out to Adidas for comment.

Adidas' Association With Ye Cripples Bottom Line in 2023

Ye's whirlwind 2022 included him catching heat for making several anti-Semitic comments. Around the same time, he was also accusing Adidas of stealing his designs. On Oct. 10, 2022, Ye shared a video of him showing staff at Adidas X-rated material during an unhinged product meeting in a 30-minute video titled Last Week. Ye's bigoted comments and erratic behavior caused several companies to part ways with him including Adidas who terminated his contract later that October. The split caused a huge dip in the company's profits.

Last May, several investors filed suit against Adidas claiming the company misled them by not disclosing Ye's behavior sooner. But the Three Stripes was able to win out in court.

Ye and Adidas' relationship might not be completely done. Back in February, Ye met with the CEO of the company Bjørn Gulden after Gulden said he didn't think Ye's anti-Semitic comments were serious.

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