The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of adidas AG (“adidas” or “the Company”) (OTC: ADDYY, ADDDF) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. adidas ended its partnership with Kanye West on the “Yeezy” brand name on October 25, 2022. The Company announced on February 9, 2023, that while it “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.” The Company added, “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.”
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The class in this case has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
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