SEC Charges Under Armour Inc. With Disclosure Failures Date
03/05/2021
The Securities and Exchange Commission today charged sports apparel manufacturer Under Armour Inc. with misleading investors as to the bases of its revenue growth and failing to disclose known uncertainties concerning its future revenue prospects. Under Armour has agreed to pay $9 million to settle the action.
According to the SEC s order, by the second half of 2015, Under Armour s internal revenue and revenue growth forecasts for the third and fourth quarters of 2015 began to indicate shortfalls from analysts revenue estimates. The order finds, for example, that the company was not meeting internal sales projections for North America, and warm winter weather was negatively impacting sales of Under Armour s higher-priced cold weather apparel. The order further finds that in response, for six consecutive quarters beginning in the third quarter of 2015, Under Armour accelerated, or pulled forward, a t
Litigation Release No. 25036 / February 24, 2021
Securities and Exchange Commission v. Glen A. Stewart, No. 1:21-cv-00550 (D. Colo. filed February 24, 2021)
The Securities and Exchange Commission today announced charges against Glen A. Stewart, CEO of Colorado-based Wiser Investments, Inc., for acting as an unregistered broker and illegally selling Wiser securities in unregistered transactions to retail investors.
According to the SEC s complaint, from at least August 2017 through October 2019, Stewart raised approximately $558,867 through the offer and sale of convertible notes and stock issued by Wiser Investments and its successor entity Wiser Investments, Inc. to approximately 39 investors who he identified through his tax advisory company. In connection with these sales, Stewart allegedly received $45,853.50 in transaction-based compensation. In offering and selling the securities, Stewart allegedly, conducted sales meetings with prospective investors and advised them on th
FOR IMMEDIATE RELEASE Washington D.C., Feb. 24, 2021
The Securities and Exchange Commission today announced settled charges against an Oklahoma-based gas exploration and production company, Gulfport Energy Corporation, and its former CEO, Michael G. Moore, for failing to properly disclose as compensation certain perks provided to Moore, as well as failing to disclose certain related person transactions.
The SEC s separate orders against Gulfport and Moore find that, from 2014 to 2018, Gulfport failed to disclose approximately $650,000 in executive compensation in the form of perquisites received by Moore, and also failed to disclose certain related person transactions involving Moore. According to the orders, the undisclosed perquisites included the cost of Moore’s use of Gulfport s chartered aircraft for certain travel. The undisclosed perquisites also included costs associated with Moore s use of a Gulfport corporate credit card for personal expenses that
Litigation Release No. 24984 / December 15, 2020
Securities and Exchange Commission v. Roland M. Mathys, No. 18-civ-00701-JGK (S.D.N.Y.)
On December 2, 2020, the U.S. District Court for the Southern District of New York entered a default judgment against Roland M. Mathys for insider trading in the securities of Bioverativ, Inc.
The SEC s complaint against Mathys, filed on June 13, 2019, alleged that Mathys received material non-public information about an impending acquisition of Bioverativ and, on the basis of that information, purchased out-of-the-money Bioverativ call options in the days immediately leading up to the public announcement. The complaint alleged that Mathys s purchases made up a significant portion of all reported options trades in the series of Bioverativ options he traded, including almost 100 percent of the market in several instances. According to the complaint, Mathys made approximately $5 million from his illicit trading.