SAN FRANCISCO, Dec. 06, 2019 (GLOBE NEWSWIRE) -- Hagens Berman urges Under Armour, Inc. (NYSE: UA, UAA) investors who have suffered losses in excess of $100,000 to submit their losses now to learn if they qualify to recover compensable damages. A securities fraud class action has been filed against the company and senior executives.
Under Armour (UA, UAA) Securities Class Action:
The complaint alleges that Defendants misled investors by engaging in fraudulent accounting.
According to the complaint, Under Armour improperly shifted sales from quarter to quarter to appear healthier, including to keep pace with its long-running year-over-year 20% net revenue growth. In addition, Defendants concealed the U.S. Department of Justice’s and U.S. Securities and Exchange Commission’s investigations of Under Armour’s accounting.
On Nov. 3, 2019, The Wall Street Journal reported that the Department of Justice and the Securities and Exchange Commission were investigating Under Armour to determine whether the company “shifted sales from quarter to quarter to appear healthier.” On this news, the price of Under Armour shares fell sharply.
On Nov. 14, 2019, The Wall Street Journal reported (1) former Under Armour executives “said they scrambled to meet aggressive sales targets, borrowing business from future quarters to mask slowing demand in 2016,” (2) the company “frequently leaned on retailers to take products early and redirected goods intended for its factory stores to off-price chains to book sales in the final days of a quarter,” and (3) Federal investigators “are examining emails that show Under Armour’s founder and chief executive, Kevin Plank, knew about efforts to move revenue between quarters, according to a person familiar with the matter.”
If you invested in Under Armour between Aug. 3, 2016 and Nov. 1, 2019 (the “Class Period”) and suffered significant losses, you may qualify to be a lead plaintiff – one who selects and oversees the attorneys prosecuting the case. Contact Hagens Berman immediately for more information about the case and being a lead plaintiff.
“We’re focused on recovering investors’ substantial losses and holding Under Armour and its senior management accountable for their alleged accounting fraud,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Under Armour and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Under Armour should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email UA@hbsslaw.com.
About Hagens Berman
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Reed Kathrein, 844-916-0895