Overview
- A three-judge panel in San Francisco ruled that Adidas did not mislead investors about risks tied to its collaboration with Ye.
- The decision affirms an August 2024 district court dismissal in Portland of the case brought by the HLSA‑ILA Funds.
- Investors alleged Adidas knew of inappropriate behavior as early as 2018 and that losses followed the October 2022 split after Ye’s antisemitic remarks.
- The panel said companies are not required to disclose every episode of a celebrity partner’s unpredictable conduct when filings already flag such risks.
- After ending the partnership, Adidas sold remaining Yeezy inventory with proceeds directed to groups fighting antisemitism, and later reported a 2024 North America sales decline driven by lower Yeezy sales.