Under Armour on Friday said it has agreed to pay $434 million to settle a 2017 class action lawsuit accusing the sports apparel maker of defrauding shareholders about its revenue growth in order to meet Wall Street forecasts.
The shareholder lawsuit accused the apparel maker and CEO Kevin Plank of intentionally misleading them about the company’s financial health.
In 2021, the Baltimore-based company had agreed to pay $9 million to settle Securities and Exchange Commission (SEC) charges that it misled investors about its revenue growth.
Under Armour said it intends to pay the settlement amount of $434 million through cash on hand as well as by drawing on its $1.1 billion revolving credit facility.
The company expects its total accrual in legal proceeding contingencies related to the lawsuit to reach $434 million during the first quarter of fiscal year 2025, from $100 million at the end of fiscal 2024.
Persons:
Armour, averts, Kevin Plank, Mark Solomon, Robbins Geller Rudman, Dowd
Organizations:
Securities, Exchange Commission, SEC
Locations:
Baltimore