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UA.US
id: 1265

Under Armour (UA and UAA) $434M Investor Settlement

D. Maryland
Court
1:17-cv-00388
Case number
16 Sept 2015
Class period Start
01 Nov 2019
Class period End
Under Armour (UA and UAA) has agreed to settle for $434M with investors to resolve claims that it misled them about revenue growth and business prospects.

Outline:

In 2017, Under Armour claimed it could maintain over 20% revenue increases. However, these claims were later questioned following weaker-than-expected earnings reports and executive resignations. Following this, $UA and $UAA dropped and Under Armour faced a lawsuit from investors.

Timeline:
  • On April 21, 2016: Under Armour released its Q1 2016 earnings, highlighting robust revenue growth and projecting strong future sales.
  • On January 31, 2017: Under Armour announced weaker-than-expected Q4 earnings and the unexpected resignation of its CFO.
  • On the same day, its stock price dropped 26%.
  • On February 3, 2017: Shareholders filed a suit against Under Armour.
Background:

On April 21, 2016, Under Armour announced strong earnings for the Q1, making it the 26th quarter in a row with over 20% revenue growth.

The company said it expected to keep growing in 2016 despite internal challenges like excess inventory and the bankruptcy of a major retailer, The Sports Authority.

By January 31, 2017, the truth came out when Under Armour announced weaker-than-expected earnings for Q4 2016 and the resignation of CFO Lawrence Molloy.

This news caused the stock price to drop 26% on January 31, 2017.

On February 10, 2017, a shareholder sued the company, claiming it had misled investors about its financial health and business prospects.

What can investors expect now?

Under Armour (UA and UAA) has agreed to settle for $434M with investors to resolve claims that it misled them about its revenue growth and business prospects.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Status
Tentative Settlement
Alleged Offence
Misleading Statements
Financial Misrepresentation
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Plaintiffs
Brian Breece
Attorneys
Brower Piven, A Professional Corporation, Gardy & Notis, LLP
Defendants
Kevin A. Plank and Lawrence P. Molloy
Judge
Richard D. Bennett
Attorney fee
$434,000,000
Trades matching type
FIFO
+$434,000,000
Cash Settlement Amount

Frequently Asked Questions

Under Armour Inc C

Under Armour, Inc., together with its subsidiaries, engages developing, marketing, and distributing performance apparel, footwear, and accessories for men, women, and youth. The company provides it...

    Ticker
    UA.US
    ISIN
    US9043112062
    CIK
    1336917
    Sector
    Consumer Cyclical
    Industry
    Apparel Manufacturing
    Country
    USA
    Address
    1020 Hull Street, Baltimore, MD, United States, 21230-2080