Kanye West called out by judges as lawsuit takes unexpected turn

Kanye West returned to headlines after Adidas won a legal fight linked to the company’s past partnership with him.

Judges in the Ninth Circuit Appeals Court said that any “reasonable investor” should have understood the risks of partnering with a public and controversial rapper like West.

They noted that the 48-year-old rapper “already had public notoriety for his improper behaviour even prior to the partnership,” that means potential fallout for Adidas was not a surprise.

The Adidas-Yeezy partnership lasted from 2013 to 2022 and became extremely profitable, getting almost a billion dollars by 2021 and making up about eight percent of Adidas’ revenue.

However, the partnership ended shockingly when West made racist and antisemitic remarks in 2022, causing Adidas’ shares to drop.

Investors earlier sued Adidas, saying the company did not clearly warn them about the risks of working with West.

They argued that Adidas’ “business partners risk” statement made the danger look only possible, even though West’s behaviour was already public.

The court disagreed, saying that the statement talked about the possible effects on Adidas, not the music icon’s actions themselves.

Unlike secret problems at other companies, West’s controversial activities was already known as judges also said that investors should have understood the risks and were not misled by Adidas’ reports.

Furthermore, the ruling ends a long chapter in one of the most famous and profitable partnerships in fashion and sportswear.