Under Armour announced on Friday that it has agreed to a $434 million settlement to resolve a class action lawsuit filed in 2017, which accused the sports apparel company of defrauding shareholders about its revenue growth to meet Wall Street forecasts. The settlement, pending court approval, avoids a scheduled July 15 trial in Baltimore federal court.
The lawsuit alleged that Under Armour and its CEO, Kevin Plank, intentionally misled investors regarding the company’s financial health. In 2021, Under Armour settled with the Securities and Exchange Commission (SEC) for $9 million over charges that it misled investors about its revenue growth by pulling forward $408 million in existing orders during the second half of 2015. The settlement will be paid through a combination of cash on hand and the company’s $1.1 billion revolving credit facility. Under Armour has consistently denied the allegations, emphasizing that the agreement does not constitute an admission of fault or wrongdoing.