Reported 8 months ago
Under Armour has agreed to pay $434 million to settle a class action lawsuit from 2017 that accused the sports apparel company of deceiving shareholders about its revenue growth to meet Wall Street expectations. This settlement, awaiting court approval, avoids a trial set for July 15 in Baltimore federal court. The lawsuit alleged that Under Armour and its CEO intentionally misled investors about the company's financial status. In 2021, the company paid $9 million to settle SEC charges related to revenue growth misinformation. The SEC discovered that Under Armour had not revealed using a sales tactic to expedite $408 million in orders in late 2015. The settlement will be funded through cash reserves and credit facilities, with the company also committing to separate the roles of chair and CEO for at least three years. Under Armour denies wrongdoing and views the settlement as not an admission of fault, with a legal contingency accrual expected to reach $434 million in early 2025.
Source: YAHOO