Investors have sued Adidas over the Kanye West transaction.
Adidas is being sued by investors who allege the company was aware of Kanye West’s troubling behavior for years before they parted ways.
Adidas is accused by investors of failing to limit financial losses and take precautionary measures to limit their exposure.
Following anti-Semitic comments, the sportswear giant ended its collaboration with the designer and rapper known as Ye last year.
Adidas responded, saying, “We categorically reject these unfounded claims.”
It went on to say that it will “take all necessary measures to vigorously defend ourselves against them.”
West is not a defendant in the lawsuit. The rapper created a tremendously successful line of Adidas trainers under the Yeezy name.
Adidas has since stated that it could lose up to €700 million (£619 million) as a result of hundreds of millions of euros in unsold Yeezy items.