Adidas Quietly Won A Court Order Freezing $75M Held By Kanye’s Yeezy Brand – And It Wants To Keep It That Way

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Adidas secretly revenge a ineligible action past twelvemonth successful national tribunal that successfully froze $75 cardinal successful slope accounts held by Kanye West’s Yeezy marque aft their high-profile split, recently unsealed tribunal documents show.

Federal tribunal records obtained by Billboard show that nan lawsuit was revenge connected Nov. 11, conscionable weeks aft nan German sneaker elephantine publically terminated its narration pinch nan embattled rapper (sometimes known arsenic Ye) successful nan aftermath of his antisemitic statements and different erratic behavior.

Adidas revenge nan lawsuit to guarantee specified costs were not transferred retired of Yeezy’s slope accounts while nan 2 companies litigated their business divorcement via backstage arbitration. And a national judge quickly granted nan company’s petition for specified an “attachment” bid connected a alleged ex parte ground — meaning nan judge issued nan frost without giving Yeezy a chance to make counter-arguments.

“Petitioner has demonstrated that it has satisfied nan grounds for an ex parte attachment because nan tribunal is satisfied that location is simply a consequence that Yeezy will region aliases dissipate assets if announcement of this petition for attachment is fixed to Yeezy,” Judge Valerie E. Caproni wrote successful her Nov. 11 bid freezing nan money.

The beingness of nan litigation was first reported Wednesday evening (May 24) by nan ineligible news outlet Law360.

The newly-revealed litigation pinch Yeezy is conscionable 1 portion of a messy breakup for Adidas. With nan institution sitting connected $1.3 cardinal worthy of unsold Yeezys, CEO Bjorn Gulden announced earlier this month that Adidas would statesman trading them, but would “donate money to nan organizations that thief america and were harmed by what Ye said.”

While West himself had antecedently disclosed that Adidas revenge a national lawsuit to frost assets — he claimed successful a November video that nan institution had “put a $75 cardinal hold” connected his slope accounts — nan existent beingness of nan lawsuit could not beryllium independently confirmed because it was revenge “under seal,” meaning it was not made nationalist for illustration normal ineligible filings.

But past week, nan lawsuit and its cardinal documents were unsealed, acknowledgment to different ruling earlier successful nan period by Judge Caproni. Referencing West’s ain comments disclosing nan case, nan judge said nan desire of some sides for “confidentiality” was now outweighed by nan nationalist correct to entree tribunal records.

“Notably, nan attachment itself is nary longer confidential arsenic Ye discussed Adidas’s determination to ‘freeze’ his accounts successful a nationalist interview, and accordingly, nary confidentiality liking exists arsenic to nan beingness of nan attachment order,” Judge Caproni wrote connected May 9. “The tribunal further finds that immoderate waste and acquisition secrets aliases delicate business accusation whitethorn adequately beryllium protected done redaction.”

Now, nan newly-unsealed tribunal docket shows that lawyers for Adidas and Yeezy are presently sparring complete whether nan plus frost should stay successful spot going forward.

In an April filing, Yeezy’s lawyers urged Judge Caproni to undo nan freeze, arguing that Adidas had “failed to show that it was ever entitled to specified an bid successful nan first place.” Yeezy’s lawyers said Adidas had made procedural errors successful securing nan bid and had not provided capable impervious that it needed nan frost to stay successful place.

“Adidas has offered nary grounds that Yeezy is presently insolvent aliases that it has made immoderate effort to conceal its assets aliases put them beyond Adidas’s scope successful nan arena Adidas obtains an arbitral grant against Yeezy,” lawyer Peter D. Hawkes wrote for nan brand. “Nor has Adidas offered thing much than speculation that, successful nan absence of attachment, postulation of immoderate arbitral grant would beryllium much challenging.”

Adidas powerfully disagrees. In its ain little revenge successful early May, nan institution based on that West had demonstrated a “pattern of volatile behavior” and was successful “severe financial stress,” imperiling Adidas’s expertise to retrieve nan costs nan institution believes it will triumph successful nan pending arbitration battle.

“There is each denotation that if released, Yeezy will walk them, misusing Adidas’s spot and rendering an grant against them ineffectual,” nan institution wrote.

Adidas besides warned that, if nan $75 cardinal is released, West’s behaviour had severely harmed his ain expertise to gain it backmost successful different ways. The institution rattled disconnected a database of alleged incidents, including West “stating his admiration of Hitler” and “suggesting that Jewish group ‘are utilized by nan Chinese’ to power Black people.”

“Ye [has] further diminished nan worth of his endorsement and commercialized opportunities by continuing to make racist and incendiary statements,” Adidas’s lawyers wrote.

A lawyer for Yeezy did not return requests for remark connected Thursday. A spokesperson for Adidas declined to comment.

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