A lawsuit was filed on behalf of investors in adidas AG (OTC:ADDYY, OTC:ADDDF) shares over alleged securities laws violations.

San Diego, CA -- (SBWire) -- 05/11/2023 --An investor, who purchased shares of adidas AG (OTC: ADDYY, OTC: ADDDF), filed a lawsuit in the U.S. over alleged violations of Federal Securities Laws by adidas AG in connection with certain allegedly false and misleading statements.

Investors who purchased shares of adidas AG (OTC: ADDYY, OTC: ADDDF) have certain options and for certain investors are short and strict deadlines running. Deadline: June 27, 2023. adidas AG (OTC: ADDYY, OTC: ADDDF) investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

On October 25, 2022, adidas AG ended its business partnership with Kanye West (under which it sold shoes designed by West under the brand name "Yeezy") as a result of his anti-Semitic rhetoric.

On November 27, 2022, The Wall Street Journal published an article entitled "Adidas Top Executives Discussed Risk of Staff's 'Direct Exposure' to Kanye West Years Ago." According to the article, as early as 2018, adidas executives discussed ending the business partnership with West as a result of his behavior. Reportedly adidas feared continuing the relationship with West, as they feared it could "blow up" at any moment. The article added that West made anti-Semitic statements in front of adidas staff, and that he told adidas staff that he was considering naming an album after Adolf Hitler.

On February 9, 2023, adidas AG announced that "while the company continues to review future options for the utilization of its Yeezy inventory, this guidance already accounts for the significant adverse impact from not selling the existing stock. This would lower revenues by around € 1.2 billion and operating profit by around € 500 million this year." Further, "should 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 the company's operating profit by an additional € 500 million this year. In addition, adidas expects one-off costs of up to € 200 million in 2023. These costs are part of a strategic review the company is currently conducting aimed at reigniting profitable growth as of 2024. If all these effects were to materialize, the company would expect to report an operating loss of € 700 million in 2023." adidas' CEO stated, "[t]he numbers speak for themselves. We are currently not performing the way we should[.]"

The plaintiff claims that between May 3, 2018 and February 21, 2023, the defendants made false and/or misleading statements and/or failed to disclose, among other things, that In addition to other misconduct, Kanye West made anti-Semitic comments in front of adidas staff, and even suggested naming an album after Adolf Hitler, that adidas was aware of his behavior, and failed to warn investors that it was aware of that behavior, and had considered ending the Partnership as a result of it, that adidas failed to take meaningful precautionary measures to limit negative financial exposure if the Partnership were to end as a result of West's behavior, that adidas overstated the risk mitigation measures it took with regard to Yeezy shoes in the event that it terminated the Partnership, and that as a result, Defendants' public statements were materially false and/or misleading at all relevant times.

Those who purchased shares of adidas AG (OTC: ADDYY, OTC: ADDDF) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.