Under Armour to Settle Claims Over Past Financials With $434 Million Payment

Under Armour UAA -1.70%decrease; red down pointing triangle said it has agreed to pay $434 million to settle a yearslong lawsuit into claims that co-founder Kevin Plank misled investors about the company’s health.

Federal authorities launched a probe in 2017 examining whether the sportswear maker shifted sales from quarter to quarter to mask declining demand. Under Armour had a stretch of 26 straight quarters of at least 20% year-over-year revenue growth before it ended abruptly at the end of 2016 when the company reported it missed its sales targets.

Source: WSJ