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Tag: RETE

  • A U.S. veteran spoke out against his wrongful arrest by ICE. Now he’s being accused of assault

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    George Retes Jr. grew up in Southern California, and when he turned 18, he decided to serve in the U.S. Army, he said, because he wanted to be part of something bigger than himself.

    After a tour of duty in Iraq, Retes moved back to Ventura County this year to find a job and spend more time with his wife and two young children. In February, he began working as a contracted security guard for Glass House Farms at its cannabis greenhouses in Camarillo. Then, on July 10, everything changed as ICE raided Glass House — one of its largest immigration raids ever — while he was trying to get to work.

    Federal officers surrounded Retes and pushed him to the ground. He could hardly breathe, he said, as officers knelt on his back and neck. He was arrested, jailed for three days and was not allowed to make a phone call or see an attorney, according to the Institute for Justice, a public-interest law firm that is representing him.

    President Trump’s Department of Homeland Security never charged Retes with a crime. But after he wrote an op-ed about his experience this month, DHS started issuing new accusations against him — saying he was arrested for assault during the raid, which the 25-year-old veteran has denied. Retes said he never resisted, and now is being targeted for retaliation because he spoke out about an arrest he sees as unlawful.

    “My whole point in sharing my story, I’m trying to warn as many people as possible,” he said in an interview this week. “It doesn’t matter if you’re [politically] left, right, if you voted for Trump, hate him, love him, it doesn’t matter. This affects all of us.”

    On July 10, Retes was headed to work around 2 p.m., and the narrow road leading to the farm was logjammed, he said. He weaved his compact white Hyundai forward, past parked cars and protesters, determined to make it to his shift.

    He stopped short when he came upon a line of federal officers who blocked his path to the farm. Retes, 25, wearing shorts and a hoodie, got out of his car and tried to tell the federal agents that he worked at the farm.

    Agents ignored him, he said, and instead told him to get out of the way. So he got back in his car, and as he tried to back up, agents began lobbing tear gas canisters toward the crowd to disperse them. Retes began hacking and coughing as the gas seeped into his car and federal officers began pounding on his car door. He said they gave him instructions to move that were contradictory.

    The agents smashed his car window, pepper sprayed him, pulled him out of the car and arrested him, he said. He was handcuffed, and after his three days in jail, he was released without any explanation.

    In his Sept. 16 opinion piece for the San Francisco Chronicle — entitled “I’m a U.S. citizen who was wrongly arrested and held by ICE. Here’s why you could be next” — Retes detailed his ordeal. He has begun to take legal action to sue the U.S. government under the Federal Tort Claims Act. More than 360 people were arrested in the raid, including numerous undocumented immigrants, and one person died.

    “I served my country. I wore the uniform, I stood watch, and I believe in the values we say make us different. And yet here, on our own soil, I was wrongfully detained,” he wrote. “Stripped of my rights, treated like I didn’t belong and locked away — all as an American citizen and a veteran … if it can happen to me, it can happen to any one of us.”

    Homeland Security officials did not respond to a request for comment or answer questions about their claim of assault.

    Previously, an unnamed spokesperson for Homeland Security said he was released without a charge, and his case was being reviewed, along with others, “for potential federal charges related to the execution of the federal search warrant in Camarillo.”

    A day after Retes’ opinion piece was published, the agency said Retes “became violent and refused to comply with law enforcement. He challenged agents and blocked their route by refusing to move his vehicle out of the road. CBP arrested Retes for assault.”

    The agency denied that U.S. citizens were being wrongfully arrested by Immigration and Customs Enforcement. The post stated that operations were “highly targeted.”

    “This kind of garbage has led to a more than 1000% increase in the assaults on enforcement officers,” the agency said.

    Retes said he was astounded to learn the agency’s latest claims about July 10 — moments that were captured on video. He says DHS officials are lying.

    “I was in shock,” he said. The agency had “an opportunity to say ‘OK, what we did was wrong, we’ll take responsibility.’ … It’s crazy that they’re willing to stand 10 toes down and die on a hill of lying and say I assaulted officers.”

    Anya Bidwell, his attorney and senior attorney at the Institute for Justice, said it is significant that the government chose to respond only after his piece was published.

    “When people in this country stand up to this government, this government responds with fury,” Bidwell said. “They’re trying to impose their own version of reality. It’s so important for people like George to say, ‘I know who I am and I know what happened to me, you can’t just frame it as something that it’s not.’”

    In an aerial video that captured the initial confrontation, Retes is seen driving up to the line of agents. He steps outside of his car and remains by the driver side as he tries to reason with the agents. About 20 seconds later, he gets back in his car as the agents press forward. Within seconds they surround his car, at the same time pressing protesters back as they begin to lob tear gas canisters.

    Inside his car, Retes starts to record on his phone. He’s backing up slowly, at an angle, until tear gas makes difficult to see where he’s going, he said.

    “I’m trying to leave!” he says as agents bang on his car. There’s a loud crack as they break his car glass window. “OK I’m sorry!”

    The agents pepper-spray him and detain him. One video posted online shows a group of agents surrounding Retes, who is face down on the road. Another agent hops in his car and drives it forward and off to the side of the road.

    Retes said one agent knelt on his neck and another on his back. He was taken to the Metropolitan Detention Center in Los Angeles, and he was kept in a cell with a protester who was also arrested. While in jail, he said, he missed his daughter’s third birthday.

    After he was released, Retes said he was suspended from his job without pay for two weeks because of the arrest, and when he came back, his regular shifts were no longer available. Staying on would make it difficult to see his family, so he had to leave, he said.

    He also had to spend about $1,200 getting his car window fixed and detailed from the tear gas, he said.

    Despite the Trump administration’s actions, Retes said his faith in the government and accountability for justice remains steady. Just like when he joined the Army, he said, he still hangs on to a sense of unity to stand up for the country’s values.

    “I still believe justice can be restored — that’s why I’m standing up and speaking out,” he said. “I think it’s important now more than ever for us to be unified and standing up for our rights together. Especially when they have the audacity to try to lie, especially to the public.”

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    Melissa Gomez

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  • Indian PM Modi wraps up Washington trip with appeal to tech CEOs

    Indian PM Modi wraps up Washington trip with appeal to tech CEOs

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    WASHINGTON, June 23 (Reuters) – Indian Prime Minister Narendra Modi met with U.S. and Indian technology executives in Washington on Friday, the final day of a state visit where he agreed new defense and technology cooperation and addressed challenges posed by China.

    U.S. President Joe Biden rolled out the red carpet for Modi on Thursday, declaring after about 2-1/2 hours of talks that their countries’ economic relationship was “booming.” Trade has more than doubled over the past decade.

    Biden and Modi gathered with CEOs including Apple’s (AAPL.O) Tim Cook, Google’s (GOOGL.O) Sundar Pichai and Microsoft’s (MSFT.O) Satya Nadella.

    Also present were Sam Altman of OpenAI, NASA astronaut Sunita Williams, and Indian tech leaders including Anand Mahindra, chairman of Mahindra Group, and Mukesh Ambani, chairman of Reliance Industries, the White House said.

    “Our partnership between India and the United States will go a long way, in my view, to define what the 21st century looks like,” Biden told the group, adding that technological cooperation would be a big part of that partnership.

    Observing that there were a variety of tech companies represented at the meeting from startups to well established firms, Modi said: “Both of them are working together to create a new world.”

    Modi, who has appealed to global companies to “Make in India,” will also address business leaders at the Kennedy Center for Performing Arts.

    The CEOs of top American companies, including FedEx (FDX.N), MasterCard (MA.N) and Adobe (ADBE.O), are expected to be among the 1,200 participants.

    NOT ‘ABOUT CHINA’

    The backdrop to Modi’s visit is the Biden administration’s attempts to draw India, the world’s most populous country at 1.4 billion and its fifth-largest economy, closer amid its growing geopolitical rivalry with Beijing.

    Modi did not address China directly during the visit, and Biden only mentioned China in response to a reporter’s question, but a joint statement included a pointed reference to the East and South China Seas, where China has territorial disputes with its neighbors.

    Farwa Aamer, director for South Asia at the Asia Society Policy Institute, in an analysis note described that as “a clear signal of unity and determination to preserve stability and peace in the region.”

    Alongside agreements to sell weapons to India and share with it sensitive military technology, announcements this week included several investments from U.S.-firms aimed at spurring semiconductor manufacturing in India and lowering its dependence on China for electronics.

    White House national security spokesperson John Kirby said the challenges presented by China to both Washington and New Delhi were on the agenda, but insisted the visit “wasn’t about China.”

    “This wasn’t about leveraging India to be some sort of counterweight. India is a sovereign, independent state,” Kirby said at a news briefing, adding that Washington welcomes India becoming “an increasing exporter of security” in the Indo-Pacific.

    “There’s a lot we can do in the security front together. And that’s really what we’re focused on,” Kirby said.

    Some political analysts question India’s willingness to stand up to Beijing over Taiwan and other issues, however. Washington has also been frustrated by India’s close ties with Russia while Moscow wages war in Ukraine.

    DIASPORA TIES

    Modi attended a lunch on Friday at the State Department with Vice President Kamala Harris, the first Asian American to hold the No. 2 position in the White House, and Secretary of State Antony Blinken.

    In a toast, Harris spoke of her Indian-born late mother, Shyamala Gopalan, who came to the United States at age 19 and became a leading breast cancer researcher.

    “I think about it in the context of the millions of Indian students who have come to the United States since, to collaborate with American researchers to solve the challenges of our time and to reach new frontiers,” Harris said.

    Modi praised Gopalan for keeping India “close to her heart” despite the distance to her new home, and called Harris “really inspiring.”

    On Friday evening, Modi will address members of the Indian diaspora, many of whom have turned out at events during the visit to enthusiastically fete him, at times chanting “Modi! Modi! Modi!” despite protests from others.

    Activists said Biden had failed to strongly call out what they describe as India’s deteriorating human rights record under Modi, citing allegations of abuse of Indian dissidents and minorities, especially Muslims. Modi leads the Hindu nationalist Bharatiya Janata Party (BJP) and has held power since 2014.

    Biden said he had a “straightforward” discussion with Modi about issues including human rights, but U.S. officials emphasize that it is vital for Washington’s national security and economic prosperity to engage with a rising India.

    Asked on Thursday what he would do to improve the rights of minorities including Muslims, Modi insisted “there is no space for any discrimination” in his government.

    “There is no end to data that shows Modi is lying about minority abuse in India, and much of it can be found in the State Department’s own India country reports, which are scathing on human rights,” said Sunita Viswanath, co-founder Hindus for Human Rights, an advocacy group.

    Reporting by Steve Holland, Simon Lewis and Jeff Mason; additional reporting by Trevor Hunnicutt, Doina Chiacu, David Brunnstrom and Kanishka Singh; Editing by Don Durfee and Grant McCool

    Our Standards: The Thomson Reuters Trust Principles.

    Jeff Mason

    Thomson Reuters

    Jeff Mason is a White House Correspondent for Reuters. He has covered the presidencies of Barack Obama, Donald Trump and Joe Biden and the presidential campaigns of Biden, Trump, Obama, Hillary Clinton and John McCain. He served as president of the White House Correspondents’ Association in 2016-2017, leading the press corps in advocating for press freedom in the early days of the Trump administration. His and the WHCA’s work was recognized with Deutsche Welle’s “Freedom of Speech Award.” Jeff has asked pointed questions of domestic and foreign leaders, including Russian President Vladimir Putin and North Korea’s Kim Jong Un. He is a winner of the WHCA’s “Excellence in Presidential News Coverage Under Deadline Pressure” award and co-winner of the Association for Business Journalists’ “Breaking News” award. Jeff began his career in Frankfurt, Germany as a business reporter before being posted to Brussels, Belgium, where he covered the European Union. Jeff appears regularly on television and radio and teaches political journalism at Georgetown University. He is a graduate of Northwestern University’s Medill School of Journalism and a former Fulbright scholar.

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  • Apple CEO praises China’s innovation, long history of cooperation on Beijing visit

    Apple CEO praises China’s innovation, long history of cooperation on Beijing visit

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    SHANGHAI, March 25 (Reuters) – Apple (AAPL.O) CEO Tim Cook on Saturday used his first public remarks on his visit to China to praise the country for its rapid innovation and its long ties with the U.S. iPhone maker, according to local media reports.

    Apple (AAPL.O) CEO Tim Cook on Saturday used his first public remarks in China in recent years to praise the country for its rapid innovation and its long ties with the U.S. iPhone maker, according to local media reports.

    Cook is in Beijing to attend the China Development Forum, a government-organised event being held again in full force after the country ended its COVID controls late last year.

    Besides Cook, the event is being attended by senior government officials as well as CEOs of firms such as Pfizer and BHP.

    “Innovation is developing rapidly in China and I believe it will further accelerate,” Cook was quoted by The Paper news outlet as saying.

    His visit comes at a time of rising tensions between Beijing and Washington and as Apple has been looking to reduce its supply chain reliance on China and moving production to new up and coming centres such as India.

    Last year, production at the world’s largest iPhone factory run by Apple supplier Foxconn was heavily disrupted after China’s zero-COVID policies fuelled worker unrest.

    Cook also visited an Apple Store in Beijing on Friday, pictures of which went viral on Chinese social media.

    During his speech, Cook also discussed education and the need for young people to learn programming critical thinking skills, announcing that Apple plans to increase spending on its rural education programme to 100 million yuan, the local media reports said.

    Reporting by Brenda Goh

    Our Standards: The Thomson Reuters Trust Principles.

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  • EXCLUSIVE Russian software disguised as American finds its way into U.S. Army, CDC apps

    EXCLUSIVE Russian software disguised as American finds its way into U.S. Army, CDC apps

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    LONDON/WASHINGTON, Nov 14 (Reuters) – Thousands of smartphone applications in Apple (AAPL.O) and Google’s (GOOGL.O) online stores contain computer code developed by a technology company, Pushwoosh, that presents itself as based in the United States, but is actually Russian, Reuters has found.

    The Centers for Disease Control and Prevention (CDC), the United States’ main agency for fighting major health threats, said it had been deceived into believing Pushwoosh was based in the U.S. capital. After learning about its Russian roots from Reuters, it removed Pushwoosh software from seven public-facing apps, citing security concerns.

    The U.S. Army said it had removed an app containing Pushwoosh code in March because of the same concerns. That app was used by soldiers at one of the country’s main combat training bases.

    According to company documents publicly filed in Russia and reviewed by Reuters, Pushwoosh is headquartered in the Siberian town of Novosibirsk, where it is registered as a software company that also carries out data processing. It employs around 40 people and reported revenue of 143,270,000 rubles ($2.4 mln) last year. Pushwoosh is registered with the Russian government to pay taxes in Russia.

    On social media and in U.S. regulatory filings, however, it presents itself as a U.S. company, based at various times in California, Maryland and Washington, D.C., Reuters found.

    Pushwoosh provides code and data processing support for software developers, enabling them to profile the online activity of smartphone app users and send tailor-made push notifications from Pushwoosh servers.

    On its website, Pushwoosh says it does not collect sensitive information, and Reuters found no evidence Pushwoosh mishandled user data. Russian authorities, however, have compelled local companies to hand over user data to domestic security agencies.

    Pushwoosh’s founder, Max Konev, told Reuters in a September email that the company had not tried to mask its Russian origins. “I am proud to be Russian and I would never hide this.”

    Pushwoosh published a blog post after the Reuters article was issued, which said: “Pushwoosh Inc. is a privately held C-Corp company incorporated under the state laws of Delaware, USA. Pushwoosh Inc. was never owned by any company registered in the Russian Federation.”

    The company also said in the post, “Pushwoosh Inc. used to outsource development parts of the product to the Russian company in Novosibirsk, mentioned in the article. However, in February 2022, Pushwoosh Inc. terminated the contract.”

    After Pushwoosh published its post, Reuters asked Pushwoosh to provide evidence for its assertions, but the news agency’s requests went unanswered.

    Konev said the company “has no connection with the Russian government of any kind” and stores its data in the United States and Germany.

    Cybersecurity experts said storing data overseas would not prevent Russian intelligence agencies from compelling a Russian firm to cede access to that data, however.

    Russia, whose ties with the West have deteriorated since its takeover of the Crimean Peninsula in 2014 and its invasion of Ukraine this year, is a global leader in hacking and cyber-espionage, spying on foreign governments and industries to seek competitive advantage, according to Western officials.

    Reuters Graphics

    HUGE DATABASE

    Pushwoosh code was installed in the apps of a wide array of international companies, influential non-profits and government agencies from global consumer goods company Unilever Plc (ULVR.L) and the Union of European Football Associations (UEFA) to the politically powerful U.S. gun lobby, the National Rifle Association (NRA), and Britain’s Labour Party.

    Pushwoosh’s business with U.S. government agencies and private companies could violate contracting and U.S. Federal Trade Commission (FTC) laws or trigger sanctions, 10 legal experts told Reuters. The FBI, U.S. Treasury and the FTC declined to comment.

    Jessica Rich, former director of the FTC’s Bureau of Consumer Protection, said “this type of case falls right within the authority of the FTC,” which cracks down on unfair or deceptive practices affecting U.S. consumers.

    Washington could choose to impose sanctions on Pushwoosh and has broad authority to do so, sanctions experts said, including possibly through a 2021 executive order that gives the United States the ability to target Russia’s technology sector over malicious cyber activity.

    Pushwoosh code has been embedded into almost 8,000 apps in the Google and Apple app stores, according to Appfigures, an app intelligence website. Pushwoosh’s website says it has more than 2.3 billion devices listed in its database.

    “Pushwoosh collects user data including precise geolocation, on sensitive and governmental apps, which could allow for invasive tracking at scale,” said Jerome Dangu, co-founder of Confiant, a firm that tracks misuse of data collected in online advertising supply chains.

    “We haven’t found any clear sign of deceptive or malicious intent in Pushwoosh’s activity, which certainly doesn’t diminish the risk of having app data leaking to Russia,” he added.

    Google said privacy was a “huge focus” for the company but did not respond to requests for comment about Pushwoosh. Apple said it takes user trust and safety seriously but similarly declined to answer questions.

    Keir Giles, a Russia expert at London think tank Chatham House, said despite international sanctions on Russia, a “substantial number” of Russian companies were still trading abroad and collecting people’s personal data.

    Given Russia’s domestic security laws, “it shouldn’t be a surprise that with or without direct links to Russian state espionage campaigns, firms that handle data will be keen to play down their Russian roots,” he said.

    ‘SECURITY ISSUES’

    After Reuters raised Pushwoosh’s Russian links with the CDC, the health agency removed the code from its apps because “the company presents a potential security concern,” spokesperson Kristen Nordlund said.

    “CDC believed Pushwoosh was a company based in the Washington, D.C. area,” Nordlund said in a statement. The belief was based on “representations” made by the company, she said, without elaborating.

    The CDC apps that contained Pushwoosh code included the agency’s main app and others set up to share information on a wide range of health concerns. One was for doctors treating sexually transmitted diseases. While the CDC also used the company’s notifications for health matters such as COVID, the agency said it “did not share user data with Pushwoosh.”

    The Army told Reuters it removed an app containing Pushwoosh in March, citing “security issues.” It did not say how widely the app, which was an information portal for use at its National Training Center (NTC) in California, had been used by troops.

    The NTC is a major battle training center in the Mojave Desert for pre-deployment soldiers, meaning a data breach there could reveal upcoming overseas troop movements.

    U.S. Army spokesperson Bryce Dubee said the Army had suffered no “operational loss of data,” adding that the app did not connect to the Army network.

    Some large companies and organizations including UEFA and Unilever said third parties set up the apps for them, or they thought they were hiring a U.S. company.

    “We don’t have a direct relationship with Pushwoosh,” Unilever said in a statement, adding that Pushwoosh was removed from one of its apps “some time ago.”

    UEFA said its contract with Pushwoosh was “with a U.S. company.” UEFA declined to say if it knew of Pushwoosh’s Russian ties but said it was reviewing its relationship with the company after being contacted by Reuters.

    The NRA said its contract with the company ended last year, and it was “not aware of any issues.”

    Britain’s Labour Party did not respond to requests for comment.

    “The data Pushwoosh collects is similar to data that could be collected by Facebook, Google or Amazon, but the difference is that all the Pushwoosh data in the U.S. is sent to servers controlled by a company (Pushwoosh) in Russia,” said Zach Edwards, a security researcher, who first spotted the prevalence of Pushwoosh code while working for Internet Safety Labs, a nonprofit organization.

    Roskomnadzor, Russia’s state communications regulator, did not respond to a request from Reuters for comment.

    FAKE ADDRESS, FAKE PROFILES

    In U.S. regulatory filings and on social media, Pushwoosh never mentions its Russian links. The company lists “Washington, D.C.” as its location on Twitter and claims its office address as a house in the suburb of Kensington, Maryland, according to its latest U.S. corporation filings submitted to Delaware’s secretary of state. It also lists the Maryland address on its Facebook and LinkedIn profiles.

    The Kensington house is the home of a Russian friend of Konev’s who spoke to a Reuters journalist on condition of anonymity. He said he had nothing to do with Pushwoosh and had only agreed to allow Konev to use his address to receive mail.

    Konev said Pushwoosh had begun using the Maryland address to “receive business correspondence” during the coronavirus pandemic.

    He said he now operates Pushwoosh from Thailand but provided no evidence that it is registered there. Reuters could not find a company by that name in the Thai company registry.

    Pushwoosh never mentioned it was Russian-based in eight annual filings in the U.S. state of Delaware, where it is registered, an omission which could violate state law.

    Instead, Pushwoosh listed an address in Union City, California as its principal place of business from 2014 to 2016. That address does not exist, according to Union City officials.

    Pushwoosh used LinkedIn accounts purportedly belonging to two Washington, D.C.-based executives named Mary Brown and Noah O’Shea to solicit sales. But neither Brown nor O’Shea are real people, Reuters found.

    The one belonging to Brown was actually of an Austria-based dance teacher, taken by a photographer in Moscow, who told Reuters she had no idea how it ended up on the site.

    Konev acknowledged the accounts were not genuine. He said Pushwoosh hired a marketing agency in 2018 to create them in an attempt to use social media to sell Pushwoosh, not to mask the company’s Russian origins.

    LinkedIn said it had removed the accounts after being alerted by Reuters.

    Reporting by James Pearson in London and Marisa Taylor in Washington
    Additional reporting by Chris Bing in Washington, editing by Chris Sanders and Ross Colvin

    Our Standards: The Thomson Reuters Trust Principles.

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  • Adidas ends Ye deal over hate speech, costing rapper his billionaire status

    Adidas ends Ye deal over hate speech, costing rapper his billionaire status

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    • Adidas ends partnership immediately
    • To take about $250 mln hit to 2022 net income
    • Gap, Balenciaga have also cut ties with Ye

    Oct 25 (Reuters) – Adidas AG (ADSGn.DE) terminated its partnership with rapper and fashion designer Ye on Tuesday after he made a series of antisemitic remarks, a move that knocked the musician off the Forbes list of the world’s billionaires.

    Adidas put the tie-up, which has produced several hot-selling Yeezy branded sneakers, under review this month.

    “Adidas does not tolerate antisemitism and any other sort of hate speech,” the German company said on Tuesday.

    “Ye’s recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect and fairness,” it said.

    Forbes magazine said the end of the deal meant Ye’s net worth shrank to $400 million. The magazine had valued his share of the Adidas partnership at $1.5 billion.

    The remainder of Ye’s wealth comes from real estate, cash, his music catalogue and a 5% stake in ex-wife Kim Kardashian’s shapewear firm, Skims, Forbes said.

    Representatives for Ye, formerly known as Kanye West, did not immediately respond to a request for comment.

    For Adidas, ending the partnership and the production of Yeezy branded products, as well as stopping all payments to Ye and his companies, will have a “short-term negative impact” of up to 250 million euros ($248.90 million) on net income this year, the company said.

    Ye has courted controversy in recent months by publicly ending major corporate tie-ups and making outbursts on social media against other celebrities. His Twitter and Instagram accounts were restricted, with the social media platforms removing some of his online posts that users condemned as antisemitic.

    In now-deleted Instagram posts earlier this year, the multiple Grammy award-winning artist accused Adidas and U.S. apparel retailer Gap Inc (GPS.N) of failing to build contractually promised permanent stores for products from his Yeezy fashion line.

    [1/3] Singer Kanye West walks past models after presenting his Fall/Winter 2015 partnership line with Adidas at New York Fashion Week February 12, 2015. REUTERS/Lucas Jackson/File Photo

    He also accused Adidas of stealing his designs for its own products.

    On Tuesday, Gap, which had ended its partnership with Ye in September, said it was taking immediate steps to remove Yeezy Gap products from its stores and that it had shut down YeezyGap.com.

    “Antisemitism, racism and hate in any form are inexcusable and not tolerated in accordance with our values,” Gap said in a statement.

    European fashion house Balenciaga has also cut ties with Ye, according to media reports.

    “The saga of Ye … underlines the importance of vetting celebrities thoroughly and avoiding those who are overly controversial or unstable,” said Neil Saunders, managing director of GlobalData.

    Adidas poached Ye from rival Nike Inc (NKE.N) in 2013 and agreed to a new long-term partnership in 2016 in what the company then called “the most significant partnership created between a non-athlete and a sports brand.”

    The tie-up helped the German brand close the gap with Nike in the U.S. market.

    Yeezy sneakers, which cost between $200 and $700, generate about 1.5 billion euros ($1.47 billion) in annual sales for Adidas, making up a little over 7% of its total revenue, according to estimates from Telsey Advisory Group.

    Shares in Adidas, which cut its full-year forecast last week, closed down 3.2%. The group said it would provide more information as part of its upcoming Q3 earnings announcement on Nov. 9.

    ($1 = 1.0044 euros)

    Reporting by Mrinmay Dey, Uday Sampath and Aishwarya Venugopal in Bengaluru and Lisa Richwine in Los Angeles; Editing by Tomasz Janowski, Sriraj Kalluvila, Bernadette Baum, Anil D’Silva and Cynthia Osterman

    Our Standards: The Thomson Reuters Trust Principles.

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