Investors are suing Adidas after the company severed ties with Kanye West, claiming that the company knew of his questionable behavior before the partnership.
In October, Ye was dropped from the company after making several anti-sematic comments.
On Friday, shareholders claim in their lawsuit that the business was aware of the potential risk of working with the rapper in 2018 but did not take any preventative steps to reduce exposure.
“In the Personnel Risk section of the 2018 Report’s discussion of risk, the Company extolled its commitment to having an equitable workplace, and its strategic workforce management process, known as ‘People Strategy,’ while failing to discuss how it routinely ignored extreme behavior from Kanye West,” according to the suit.
According to reports, Ye is not included as a defendant in the lawsuit. However, both former chief executive officer Kasper Rorsted and former chief financial officer Harm Ohlmeyer are.
The company stated in February that it anticipates losing $1.3 billion in sales this year as a result of the absence of Yeezy apparel and footwear.
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