Adidas seems to ahve just closed the book on one of its biggest legal battles tied to its long and complicated partnership with Kanye West. A federal appeals court in San Francisco dismissed a shareholder lawsuit that accused the company of hiding Ye’s misconduct from theinvestors.
The court said Adidas had already given clear warnings about the risks of working with big celebrities. In other words, investors should have understood that a partnership of this scale always carries uncertainty.
The lawsuit came from HLSA-ILA Funds, which claimed Adidas knew about Ye’s inappropriate behavior as early as 2018 but failed to disclose it. The group argued that the company’s silence contributed to stock drops in 2022 after Adidas cut ties.
The partnership began in 2013 and became one of the most profitable collaborations in sneaker history. But it fell apart fast once reports surfaced about workplace misconduct and Ye’s public antisemitic remarks.
Adidas was forced to walk away, and several other brands followed. The court’s ruling gives Adidas some breathing room, but the financial effects of the breakup are still real.
The company reported a small decline in North American sales in 2024, driven mostly by reduced Yeezy releases. Even with cases like this behind them, the long-term adjustment away from Yeezy revenue continues.
Kanye West Adidas Lawsuit
The lawsuit essentially argued that Adidas knew about Kanye West’s troubling behavior for years but chose not to warn investors. The plaintiffs claimed this silence misled shareholders and played a role in the stock dip that followed Adidas cutting ties in 2022.
Adidas pushed back, saying it had already made the risks of working with high-profile celebrities clear. The court agreed, ruling that investors should have understood the unpredictability that comes with figures like Ye. The decision removes a major legal threat for Adidas, but it does not erase the messy fallout of the partnership.
This ruling gives Adidas a cleaner legal path forward, but the larger story is still unfolding. The Yeezy era shaped modern sneaker culture, and its collapse continues to echo through both the brand and the industry.
