Under Armour Announces Settlement of Previously Disclosed Securities and Exchange Commission Matter

Rhea-AI Summary

Under Armour, Inc. (NYSE: UAA) announced a settlement with the SEC concerning past disclosures related to 'pull forward' sales from Q3 2015 to Q4 2016. The company will pay a civil penalty of $9.0 million, resolving all SEC claims without any admission of guilt. Importantly, the SEC confirmed no enforcement action against management. The company is also responding to DOJ requests but has not received any since Q2 2020.

Positive

• Settlement with the SEC eliminates uncertainty around disclosures.
• No enforcement action recommended against company executives.

Negative

• Civil penalty of $9.0 million could impact financials.

BALTIMORE, May 3, 2021 /PRNewswire/ -- Under Armour, Inc. (NYSE: UA, UAA) (the "Company") today announced that it has entered into a settlement with the U.S. Securities and Exchange Commission (the "SEC"), resolving a previously announced investigation related to disclosure and the impact of certain "pull forward" sales for the third quarter of 2015 through the fourth quarter of 2016.

Under the terms of the settlement, the Company has agreed to pay a civil monetary penalty of $9.0 million, in addition to other non-monetary settlement terms. This settlement relates to the Company's disclosures and does not include any allegations from the SEC that sales during these periods did not comply with generally accepted accounting principles. The Company neither admitted nor denied the SEC's charges. The settlement resolves all outstanding SEC claims. The SEC Staff has confirmed that it does not intend to recommend that any enforcement action be taken against the Company's Executive Chairman, Chief Financial Officer or any other member of management in connection with this investigation.

The Company previously announced that it had also been responding to requests for documents and information from the U.S. Department of Justice (the "DOJ"). The Company has not received any requests from the DOJ since the second quarter of 2020.

About Under Armour, Inc.

Under Armour, Inc., headquartered in Baltimore, Maryland, is a leading inventor, marketer and distributor of branded athletic performance apparel, footwear and accessories. Designed to help advance human performance, Under Armour's innovative products and experiences are engineered to make athletes better. For further information, please visit http://about.underarmour.com.

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SOURCE Under Armour, Inc.

FAQ

What is the recent SEC settlement related to Under Armour (UAA)?

Under Armour settled with the SEC regarding disclosures of 'pull forward' sales, agreeing to a $9.0 million penalty.

How does the SEC settlement affect Under Armour's executives?

The SEC confirmed that no enforcement action is intended against Under Armour's management.

Is Under Armour facing any other legal issues?

Under Armour has been responding to requests from the DOJ but has not received any since Q2 2020.

What financial impact does the SEC settlement have on Under Armour (UAA)?

The settlement includes a $9.0 million civil penalty, which may affect the company's financials.