NEW YORK, May 03, 2023 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the securities of adidas AG (“adidas”, “Adidas” or the “Company”) (OTC PINK: ADDDF, ADDYY) between May 3, 2018 and February 21, 2023, inclusive (the “Class Period”). The lawsuit was filed in the United States District Court for the District of Oregon and alleges violations of the Securities Exchange Act of 1934.
adidas is a sports brand and engages in the design, distribution, and marketing of athletic and sporting lifestyle products. In November 2013, adidas announced the beginning of a partnership with Kanye West, whereby West would endorse adidas shoes (the “Partnership”).
Plaintiff alleges that Defendants made materially false and misleading statements throughout the Class Period. Specifically, Plaintiff alleges that Defendants failed to disclose that: (1) 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; (2) 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; (3) 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; and (4) adidas overstated the risk mitigation measures it took with regard to Yeezy shoes in the event that it terminated the Partnership.
On November 27, 2022, The Wall Street Journal released an article entitled “Adidas Top Executives Discussed Risk of Staffs 'Direct Exposure' to Kanye West Years Ago.” The article discussed tensions behind the scenes as a result of West berating adidas staff and engaging in other misconduct, and also revealed that West made anti-Semitic comments in front of adidas staff, including his desire to name an album after Adolf Hitler.
On this news, ADDYY fell $2.02 per ADR, or 3.13%, to close at $62.34 on November 28, 2022. ADDDF fell $0.81 per ADR to close at $126.44 on November 28, 2022.
Then, on February 9, 2023, adidas warned that it could shift from a profit to a loss if it should fail to sell its inventory of Yeezy shoes, following its termination of the Partnership. Specifically, it said that it expected sales to fall at a high single-digit rate in currency-neutral terms because of the “significant adverse impact of not selling the existing stock” of Yeezy products. Failure to sell the stock of Yeezy’s (valued at 1.2 billion euros) would accordingly lower Company revenue by 1.2 billion euros (or about $1.29 billion), and operating profit by 500 million euros.”
On this news, ADDYY fell $7.40, or 8.96%, to close at $75.16 on February 9, 2023. ADDDF fell $21.83, or 13.22%, to close at $143.23 on February 9, 2023.
Then, on February 21, 2023, S&P Global announced that it was downgrading adidas to “‘A-/A-2’ From A-1’ On Deteriorating Credit Metrics; Outlook Negative.”
On this news, ADDYY fell $3.56, or 4.62%, to close at $73.59 on February 21, 2023, and ADDDF fell $4.85, or 3.17%.
If you wish to serve as lead plaintiff, you must move the Court no later than June 27, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased or acquired adidas securities, and/or would like to discuss your legal rights and options please visit adidas AG Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or firstname.lastname@example.org.
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