Under Armour to pay $434 million to settle lawsuit over sales disclosures

Under Armour has agreed to settle a 2017 class action lawsuit for $434 million. The lawsuit accused the sports apparel maker of defrauding shareholders by misleading them about its revenue growth to meet Wall Street forecasts. The settlement, subject to court approval, avoids a scheduled trial. The company had previously settled with the Securities and Exchange Commission for $9 million over similar charges. Under Armour plans to pay the settlement amount through cash on hand and its revolving credit facility. The company denies the allegations and the settlement is not an admission of fault. The accrual in legal proceeding contingencies related to the lawsuit is expected to reach $434 million by Q1 2025.