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Yeezy Settles Shipping Lawsuit for $950K

Kanye West—or, as the Grammy-winning artist is now known, Ye—has signed off on a settlement agreement requiring Yeezy and Yeezy Apparel to pay out $950,000 for their contested handling of order shipping delays.

The state of California had sued Ye’s popular sneaker and apparel brands last month for violating a statute requiring that items shipped over the internet be delivered within 30 days. Should shipment exceed 30 days, state law requires vendors either provide a refund, send equivalent or superior replacement goods or issue a delay notice—actions the suit claimed Yeezy did not take.

The agreement, unveiled by the Los Angeles County District Attorney’s Office Monday, but formally entered Nov. 3, commits Yeezy and Yeezy Apparel to paying $800,000 in civil penalties, $100,000 to cover the cost of investigation and $50,000 for California’s Consumer Protection Prosecution Trust Fund. The settlement also prohibits the two companies from “making any untrue or misleading representations regarding the period of time in which a product is expected to ship” and violating the California law the state originally accused them of breaking. Yeezy and Yeezy Apparel did not admit wrongdoing.

According to the agreement, Adidas agreed to operate Yeezy’s website “for purposes of conducting the sales, shipping, and refund processing” in March 2019. Should Adidas stop providing those services in the next five years, Yeezy is required to either find a “reputable” alternative and notify the state, or designate an executive or vice president who would be responsible for ensuring Yeezy’s compliance with the settlement.

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“Online consumers are entitled to protection against unwarranted fees and unreasonably long waits for purchases to arrive on their doorsteps,” District Attorney George Gascón said in a statement. “We will enforce state and federal laws governing online shopping in Los Angeles County.”

Though California filed its original complaint on Oct. 22, signatures on the settlement suggest the state had been discussing the issue with Yeezy before the matter became public. Ye was the first to sign the agreement, on Oct. 18—the same day reports emerged that the “Donda” hitmaker legally changed his name. Seza Mikikian, a Los Angeles County deputy district attorney, signed off on both the complaint and settlement on Oct. 22. According to the Los Angeles County District Attorney’s Office, Yeezy and Yeezy Apparel cooperated in the investigation.

The quick resolution to California’s shipping delays complaint stands in contrast to the ongoing legal battle Yeezy is engaged in with Walmart. The ongoing spat began in April, when the mega retailer formally objected to a Yeezy trademark application. Two months later, the 22-time Grammy winner and former presidential candidate hit back with an “unfair competition” lawsuit. Walmart, the suit alleged, was selling a “cheap knock-off” of the popular Yeezy Foam Runner clog. Late last month, the nation’s biggest brick-and-mortar retailer filed a notice of demurrer—a legal move that alerts the music mogul that it will challenge the basic legitimacy of his complaint “on the grounds that it is fatally uncertain.”