Overview
- The Ninth Circuit in San Francisco rejected investors’ appeal and left in place an August 2024 dismissal issued by a federal judge in Portland, Oregon.
- The three-judge panel held that Adidas disclosed the inherent risks of celebrity partnerships and had no duty to foresee or itemize Ye’s unpredictable conduct.
- The class action from HLSA-ILA Funds, filed for maritime workers in southeast Virginia, alleged Adidas knew of improper behavior dating to 2018 and failed to tell investors.
- Adidas cut ties with Ye in October 2022 after antisemitic remarks, ending a nine-year deal that had generated about $1.7 billion in 2021, roughly 7% of annual sales.
- In 2023 and 2024 Adidas sold remaining Yeezy inventory with proceeds directed to groups combating antisemitism, while 2024 North America revenue fell 2% due to lower Yeezy sales.