Why are investors suing Adidas over the Kanye West deal?

Investors allege Adidas continued its partnership with Kanye West despite knowing his controversial behavior for years and misled shareholders about the risks.

What was the outcome of the lawsuit against Adidas regarding Kanye West?

The 9th US Circuit Court of Appeals sided with Adidas, ruling that investors should anticipate risks associated with celebrity partnerships.

How much did the Kanye West Yeezy partnership cost Adidas?

The partnership breakdown left Adidas with over €1 billion in Yeezy shoes and significantly impacted its share price.

Home / Business and Economy / Adidas Sued for Kanye West Partnership Risks

Adidas Sued for Kanye West Partnership Risks

4 Dec, 2025

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Summary

Investors allege Adidas knew of West's conduct for years.
Adidas misled shareholders about partnership risks.
Court ruled a reasonable investor knew celebrity deals carry risks.

Adidas Sued for Kanye West Partnership Risks

Adidas is facing a lawsuit from investors who claim the company was aware of Kanye West's controversial behavior for an extended period. The suit alleges that Adidas failed to disclose these risks to shareholders, despite internal knowledge of West's conduct. This legal challenge comes after the significant financial fallout from the terminated Yeezy brand collaboration.

The German sportswear giant ultimately saw its share price decline following the breakdown of the partnership. The Yeezy line, known for its lucrative luxury sneakers, generated substantial revenue for Adidas prior to the controversy. The termination left Adidas with over €1 billion in unsold Yeezy inventory.

In a recent ruling, the 9th US Circuit Court of Appeals upheld a previous dismissal of the case. The court stated that a reasonable investor would understand that partnering with a celebrity like West carries inherent risks of improper behavior. Adidas has since announced plans to sell remaining Yeezy products and donate a portion of the proceeds.