Kanye West-Linked Lawsuit Against Adidas Thrown Out by Federal Judge

A federal judge has thrown out a class action lawsuit filed against Adidas for its collaboration with Kanye West, alleging securities fraud related to the controversial artist's supposed inappropriate conduct.

The lawsuit, filed by HRSA-ILA Funds, alleged that Adidas concealed West's misconduct from 2013 to 2018 and their apprehensions about associating with him.

The court rejected these allegations, stating that there was a lack of evidence to support the claim that misleading statements affected investors.

"Certainly, that Ye allegedly engaged in such behavior while working with Adidas is troubling," Judge Karin J. Immergut said, according to AllHipHop.

"This Court does not condone what Ye allegedly did. But the question before this Court is not whether to admonish Ye or hold Adidas morally accountable for Ye's conduct," the judge added. "This Court is faced with a precise legal question: has [HRSA-ILA Funds] sufficiently pleaded facts showing that Adidas misled investors and thereby committed federal securities fraud? On the current record before this Court, the answer is no."

The judge cited a 2020 Business Partner Risk disclosure that's accessible to investors and recognizes the potential consequences of unethical behavior by business partners. The document outlined the strategies Adidas had in place to manage these risks, including contract clauses that permitted the suspension or termination of partnerships when necessary.

In 2021, the Adidas-Yeezy partnership reached a major achievement, generating over $1.7 billion in annual sales and providing a significant boost to Adidas' revenue. But in 2022, West made headlines for expressing antisemitic views on social media, which led to significant backlash and the suspension of his account.

Despite these developments, the award-winning musician continued to make controversial statements in interviews, resulting in Adidas deciding to end their partnership.

This decision had substantial financial consequences, with a reported $1.3 billion decline in revenue by 2023 attributed to the fallout.

This comes after the 47-year-old rapper made an appearance at a rally for Donald Trump in Beverly Hills, California, over the weekend.

Arriving at the event in his sleek Tesla Cybertruck alongside his wife, Bianca Censori, West was captured in a widely circulated video.

Excited fans surrounded the couple's vehicle, enthusiastically displaying their support with "Make America Great Again" flags.

While West has kept his 2024 voting preference private, the Yeezy creator has expressed support for the former president in the past.

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