Adidas AG Class Action Lawsuit - ADDYY; ADDDF
Case Summary
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The Adidas class action lawsuit seeks to represent purchasers or acquirers of adidas AG (OTC: ADDYY; ADDDF) publicly traded securities between May 3, 2018 and February 21, 2023, inclusive (the “Class Period”). Captioned HRSA-ILA Funds v. adidas AG, No. 23-cv-00629 (D. Or.), the Adidas class action lawsuit charges adidas and certain of its top executives with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Adidas class action lawsuit, please provide your information in the form on this page. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com. Lead plaintiff motions for the Adidas class action lawsuit must be filed with the court no later than June 27, 2023.
CASE ALLEGATIONS: In November 2013, adidas announced a partnership with Kanye West, whereby Kanye West would endorse adidas shoes. On February 8, 2015, Kanye West debuted the first adidas shoe that he helped design, the Yeezy 750 Boost. By 2019, sales of Yeezy shoes hit over $1 billion. But on October 25, 2022, adidas ended its partnership with Kanye West after weeks of criticism over Kanye West’s overtly anti-Semitic and other racially offensive comments.
The Adidas class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) in addition to other misconduct, Kanye West made anti-Semitic comments in front of adidas staff and even suggested naming an album Adolf Hitler; (ii) adidas was aware of Kanye West’s behavior and failed to warn investors that it was aware of that behavior and had considered ending its partnership as a result of it; (iii) adidas failed to take meaningful precautionary measures to limit negative financial exposure if its partnership with Kanye West were to end as a result of Kanye West’s behavior; and (iv) adidas overstated the risk mitigation measures it took with regard to Yeezy shoes in the event that it terminated its partnership.
On November 27, 2022, The Wall Street Journal released an article entitled “Adidas Top Executives Discussed Risk of Staff’s ‘Direct Exposure’ to Kanye West Years Ago.” The article revealed that adidas’ senior leadership discussed as far back as 2018 the risk of continuing a relationship with Kanye West. On this news, the prices of adidas American depositary receipts (“ADRs”) fell.
Then, on February 9, 2023, adidas warned that it could shift from a profit to a loss if adidas failed to sell its inventory of Yeezy shoes, following its termination of its partnership with Kanye West. Adidas further explained that “[s]hould the company irrevocably decide not to repurpose any of the existing Yeezy product going forward, this would result in the write-off of the existing Yeezy inventory and would lower [adidas’] operating profit by an additional € 500 million this year. In addition, adidas expects one-off costs of up to € 200 million in 2023.” On this news, the prices of adidas ADRs fell again.
Finally, on February 21, 2023, S&P Global announced it was downgrading adidas to “‘A-/A-2’ From A+/A-1’ On Deteriorating Credit Metrics; Outlook Negative.” On this news, the prices of adidas ADRs fell, further damaging investors.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired adidas publicly traded securities during the Class Period to seek appointment as lead plaintiff of the Adidas class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Adidas class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Adidas class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Adidas class action lawsuit.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report for recovering more than $1.75 billion for investors in 2022 – the third year in a row Robbins Geller tops the list. And in those three years alone, Robbins Geller recovered nearly $5.3 billion for investors, more than double the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.