Skechers sues Adidas, citing federal arrests in college basketball investigation

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Skechers, of course, hasn't exactly made in effort in the basketball space.

The lawsuit, filed Wednesday night in Los Angeles, comes shortly after an Federal Bureau of Investigation indictment released last month charged former Adidas executive Jim Gatto with giving illegal payments to the parents and guardians of college athletes, which included family members of two Kansas players believed to be Billy Preston and Silvio De Sousa. And goes onto say "illicit payments denied competitors like Skechers who play by the rules a fair opportunity to compete".

Also named in the lawsuit were Jonathan "Brad" Augustine, an Orlando-based former AAU basketball director who had been accused of working with the trio to steer recruits to Louisville and Miami, and Thomas "T.J". It accuses Adidas of "funneling hundreds of thousands of dollars in secret payments to players, their coaches, and family".

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

A spokesperson for Adidas called the lawsuit "frivolous and nonsensical".

The company further pointed to its own ongoing suit against Skechers alleging infringement of the Adidas Stan Smith sneaker and Three-Stripe trademark. He wore these Adidas shoes in the National Basketball Association playoffs. Today, the Ninth Circuit Court of Appeals upheld an earlier injunction prohibiting the sale of the Skechers Onix shoe. Skechers also is seeking compensation for damages and legal costs, and has requested an "award of the profits that Defendant Adidas unlawfully derived as a result of its wrongful conduct".

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