In 2017, a class action security lawsuit was filed against the Under Armour company in regard to the company had misrepresented its financial health to its investors. As of June 2024, the company has stated that they have agreed to pay the settlement amount worth $434 million which was reported just weeks before the trial. However, the Under Armour class action lawsuit is still subject to approval from the court. If the court approves the lawsuit, then the Baltimore-based company will be resolved of all the claims. I, in this post, will cover all the essential details regarding the Under Armour Class Action Lawsuit Settlement along with the settlement amount and the distribution dates. Continue browsing this post, so that you cannot miss any details.
Under Armour Class Action Lawsuit Settlement 2024
Under Armour, Inc. is a Baltimore headquartered distributor of branded athletic performance apparel, footwear, and accessories. In 2017, the shareholder lawsuit claimed that the Baltimore-based company, “Under Armour’s” CEO Kevin Plank had intentionally misrepresented the company’s financial health to its investors. The reason can be considered as to meet Wall Street forecasts at the time. However, the company constantly denied the accusations of wrongdoing and has now agreed to settle the class action lawsuit which is still to be approved by the court. Under the agreement, the Baltimore-based company has agreed to pay $434 million to settle the claims brought on behalf of the purchases of Under Armour’s publicly traded shares from September 15, 2015, to November 1, 2019; as confirmed by the company officials.
The company is accused of misrepresenting its financial performance to it investors, on the agreement, its Chief Legal Officer and Corporate Secretary, Mehri Shadman said, “We firmly believe that our sales practices, accounting practices, and disclosures were appropriate, and deny at wrongdoing in this case.” He further stated, “Today’s announcement allows us to move past this more than seven year old matter so we can avoid the ongoing distraction of litigation and provide certainty to the business at a time when we are executing on important strategic priorities.” Currently, the $434 million class action lawsuit settlement is subject to definitive documentation and final court approval. As of the eligibility requirements, the investors who have purchased the Under Armour’s publicly traded shares between September 16, 2015 and November 1, 2019, they will be able to claim a share of the settlement, once the court approves it.
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Under Armour Class Action Lawsuit Settlement 2024 Details
| Post title | Under Armour Class Action Lawsuit Settlement |
| Country | The USA |
| Headquartered in | Baltimore, Maryland |
| Settlement amount | $434 million |
| Agreement made in | June |
| Year | 2024 |
Under Armour Class Action Lawsuit Payment Dates
As per the agreement, the class action lawsuit settlement worth of $434 million is yet to be approved by the court. If the court approves the settlement, the payment will be responsible to cover the allegations made by the investors who purchased Under Armour’s publicly traded shares between September 16, 2015 and November 1, 2019. The company will settle the claim through cash on hand and/or by drawing on its $1.1 billion revolving credit facility. As of March 31, 2024, the company had $859 million of cash, as confirmed by the company officials.
Under Armour Class Action Lawsuit Settlement Latest Updates
As per the agreement, the company has agreed to pay the settlement amount of $434 million to compensate the claim made by the investors against the company’s CEO Kevin Plank for misinforming the company’s financial health. As of paying the settlement amount which is considered as the second largest ever settlement of a securities suit in the fourth circuit, the company said, “The company presently expects to pay the settlement amount using balance sheet cash and/or borrowings under its revolving facility. However, the company currently expects a portion of this amount which is less than 20% to be offset by the director and officer liability insurance policies.”
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David has spent Several years reporting on the oil and gas industry, uncovering the latest trends and technological breakthroughs. His expertise in energy markets and passion for sustainable practices make his articles both insightful and forward-thinking. Davis’s in -depth analyses are a staple for professionals seeking to stay ahead in this dynamic field.