Under Armour shareholders can sue over sales disclosures – judge
May 19, 2021 9:30 AM PHT
Reuters
Under Armour Incorporated shareholders may pursue a lawsuit accusing the sports apparel company of concealing how it pulled sales forward from future quarters to meet Wall Street revenue forecasts, the subject of a recent regulatory settlement, a federal judge ruled on Tuesday, May 18.
US District Judge Richard Bennett in Baltimore said the shareholders securities fraud claims were plausible, after taking into account Under Armour s $9-million civil settlement on May 3 with the Securities and Exchange Commission (SEC).
The SEC had found that the Baltimore-based company misled investors by not disclosing that significant portions of its revenue and revenue growth resulted from its having accelerated sales orders over six quarters in 2015 and 2016.