The Adidas Group has petitioned Indian authorities to start a criminal investigation into financial irregularities at Reebok India. The action follows a lawsuit launched against the company by Subhinder Singh Prem, former managing director of Reebok India, charging defamation and wrongful termination of his duties and all of the Adidas Group's operations in the country. The Indian executive, who built up Reebok into the leading international sports brand in the country, is asking total compensation of about US$750,000. As reported in the last issue, Adidas changed the management of the Indian subsidiary after uncovering big “commercial irregularities” at the company, which could result in pre-tax charges of up to €125 million, requiring a restatement of former annual results over several previous years.  They may also involve another €70 million in restructuring costs to be charged to this year's accounts, partly due to the possible shutdown of one-third of the 1,000-odd Reebok franchised stores operating in the country.

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