Skechers Sues Adidas over Payments Made to College, HS Basketball Players

Posted May 11, 2018

The lawsuit claims Skechers can't compete for endorsement deals for those players because adidas has allegedly bribed them to sign.

An FBI investigation that launched last fall determined employees of Adidas were going to convey money to high school and college basketball athletes as well as their families, "in return for their endorsement with the company upon their turn to the professional ranks", writes CBS Sports' Kyle Boone. "Adidas's illicit bribery program, however, has corrupted all of these channels, tipping the scales unfairly in Adidas's favor to the detriment of competitors, such as Skechers".

Skechers claimed it's been "harmed due to increased advertising and marketing costs and lost sales, market share and goodwill" as a result of Adidas' actions.

Skechers is filing the suit in relation to former adidas representative Jim Gatto and the fraud charges against him.

Many are filed by companies such as Adidas against companies such as Skechers whose products sell for lower prices.

So far, an Adidas spokesperson has called Skechers' complaint "frivolous and nonsensical". Today, the Ninth Circuit Court of Appeals upheld an earlier injunction prohibiting the sale of the Skechers Onix shoe.

A USA appeals court says a shoe made by American footwear giant Skechers is almost identical to an iconic Adidas shoe and would likely confuse consumers about the manufacturers.

Skechers has filed paperwork for a messy litigation battle with Adidas.