Under Armour settles 434 million dollar lawsuit

Under Armour has agreed to a 434 million dollar settlement for a 2017 lawsuit initiated on claims that the sportswear manufacturer had not been honest with shareholders about its sales growth.

CEO Kevin Plank is said to have deliberately reported better sales figures than the company had actually achieved in order to better align with Wall Street demands. Previously, Under Armour had already paid a fine of nine million dollar to the American watchdog SEC during 2021 in relation to the allegations.

Through an investigation, the US watchdog found that Under Armour used sales tactics to accelerate or advance 408 million dollars in orders in the second half of 2015. The investors were not aware of this, according to CNN, which initially reported the news of the settlement.

The settlement has been conditionally approved by the court, avoiding a scheduled trial on July 15. The first 100 million dollars of the settlement will be paid this year. Payment of the remaining 334 million dollars is scheduled for next year.

This article originally appeared on FashionUnited.NL. Translation and edit by: Rachel Douglass.