Under Armour Reaches $434 Million Settlement in Shareholder Lawsuit

June 24, 2024

Under Armour Inc. agreed to pay $434 million to settle a 2017 lawsuit into claims that the company defrauded shareholders about its revenue growth in order to meet Wall Street forecasts.

Under Armour said it has consistently denied the accusations and entered into this agreement in principle, which is not an admission or finding of fault or wrongdoing.

The suit claims that the Baltimore-based company and its founder and current CEO Kevin Plank misled investors about declining sales and manipulated numbers by propping up future sales. Investors in the lawsuit claimed that the company repeatedly reassured them that a 26-consecutive quarter, 20 percent year-over-year revenue growth streak remained “safely intact.” SGB Media