Tuesday, 28 July 2020

Under Armour Sent SEC Notice As Founder & CFO Could Face Charges

UA Opens First Canadian Brand House | UA Newsroom
Under Armour in Canada.
(c) Under Armour

Under Armour Inc., founder Kevin Plank and Chief Financial Officer have been warned by the U.S. Securities and Exchange Commissions that they could face civil charges for bad accounting practices.

The sporting company apparently used a "pull forward" method between the third quarter of 2015 and the fourth quarter of 2016 to register a "customer sale and execute it earlier before planned", according to the filing which is a SEC violation.

"The company and the executives maintain that their actions were appropriate and intend to pursue the Wells Notice process, which will include the opportunity to respond to the SEC staff's position, and also expect to engage in a dialogue with the SEC staff to work toward a resolution of this matter," Under Armour said.

Under Armour shares have fallen by 50% this year.

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