$434 Million Under Armour Settlement: Shareholders to Benefit from Misleading Revenue Claims Lawsuit – Are You Eligible?

Under Armour Shareholders to Receive $434M Settlement Amid Misleading Revenue Claims

Under Armour Settles a Class Action Lawsuit Over Misleading Financial Disclosures

Americans who own Under Armour shares could soon receive a one-time payment as part of a $434 million settlement. According to The US Sun, the settlement that was announced by Under Armour on Friday stems from a 2017 class action lawsuit. Shareholders accused the company of misleading them about its revenue growth to meet Wall Street expectations. Under Armour is a well-known sportswear brand trading under the ticker UAA and has not admitted any wrongdoing. Kevin Plank is Under Armour’s CEO and was also named in the lawsuit. Despite denying the accusations, Under Armour decided to settle the case to avoid further legal costs. The $434 million settlement still needs court approval before any payments can be made. It will affect many Americans who own Under Armour shares including those whose stocks are part of their retirement plans and brokerage accounts if it is approved. However, how the money will be distributed among shareholders is not yet clear.

The company agreed to pay $9 million following an investigation by the Securities and Exchange Commission (SEC) in 2021. So, this isn’t the first time Under Armour has faced financial penalties for allegedly misleading investors. The SEC found that Under Armour had moved $408 million in existing orders forward in 2015 without informing investors. Take Capital One bank for example. They agreed to pay $16 million to settle claims it wrongfully charged customers extra surcharges. Customers who were charged for return checks or ACH debit transactions between September 2015 and January 2022 could receive a share of this settlement. Current customers will see their payments credited to their accounts automatically. Another settlement involves Real Good Foods. It is a frozen food supplier sold at major retailers like Walmart and Target. The company settled a lawsuit over sending spam texts to customers who had tried to opt-out. Class members can choose between two payment options and have until July 30 to submit a claim online.

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$434 Million Under Armour Settlement: Shareholders to Benefit from Misleading Revenue Claims Lawsuit – Are You Eligible? (PHOTO: Top Class Actions)

Under Armour Agrees to $434M Settlement, Shareholders May Receive Compensation for Financial Losses

Furthermore, class action lawsuits allow groups of Americans to band together in court against companies they believe have wronged them. These suits are often settled to avoid the high costs and time involved in litigation, even if the companies do not admit wrongdoing. The $434 million settlement offers some compensation for the financial harm they claim to have suffered to Under Armour shareholders. The final approval and distribution details will be closely watched by many Americans invested in the company.

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