In advance of a July 15 trial in Baltimore federal court, Under Armour has agreed to pay $434 million to settle a class action lawsuit filed in 2017 that alleged the sports apparel company defrauded shareholders about revenue growth to meet Wall Street forecasts.
Under Armour said that it plans to fund the settlement amount through cash and its $1.1 billion revolving credit facility. The company’s regulatory filing also state that it will continue to separate the positions of the chair and chief executive offer for at least three more years.
In 2021, Under Armour settled a case for $9 million with the Securities and Exchange Commission that charged the company deceived investors about its revenue growth. The commission said the Baltimore-based company did not tell investors that it used a sales tactic to “pull forward” $408 million in existing orders in the second half of 2015.
