adidas AG (ADS.DE)
- Associated Press Finance
Adidas is investigating allegations of embezzlement and bribery in China, according to news reports
Athletic apparel company Adidas has launched an investigation into allegations of “compliance violations” in China after receiving an anonymous letter earlier this month accusing local executives of embezzling “millions of euros,” according to news reports. Adidas confirmed it had received an anonymous June 7 letter indicating potential “compliance violations” in China, the Wall Street Journal and Bloomberg reported. Chinese state media outlet Jiemian last week reported that an anonymous group of whistleblowers, who called themselves employees of Adidas China, had sent the letter containing the allegations to the company’s German headquarters.
- CNN Business
Adidas is investigating allegations of embezzlement and kickbacks in China
Adidas says it has started an investigation into allegations of “compliance violations” in China, a key market for its sportswear.
- Reuters
Adidas shares fall on investigation into China corruption allegation
"Adidas takes allegations of possible compliance violations very seriously and is clearly committed to complying with legal and internal regulations and ethical standards in all markets where we operate," it said in a statement. Adidas shares were down 4% at 216 euros by 1030 GMT. The claims "highlight the challenges many companies face in maintaining consistent oversight and control of their digital operations in the Chinese market," said Jacques Roizen, managing director of China consulting at Digital Luxury Group in Shanghai.
