Under Armour Executives Face Investigation for Fiduciary Duty Breaches

Schubert Jonckheer & Kolbe LLP is investigating potential derivative claims on behalf of the shareholders of Under Armour, Inc. (NYSE: UAA) (“Under Armour”) related to the company’s accounting practices.

On November 3, 2019, it was reported that the U.S. Department of Justice and the U.S. Securities and Exchange Commission were investigating the company’s revenue recognition practices and whether it had shifted sales from quarter to quarter to make them appear stronger. The company subsequently confirmed the probe, and that it had been cooperating since July 2017. On November 14, 2019, it was further reported that the company had utilized a range of sales and shipping tactics to reach sales goals and hide slowing demand. The company and certain of its executives have been sued in a securities class action lawsuit, charging them with failing to disclose material information to investors and violating federal securities laws.

The Schubert Firm is investigating potential derivative claims based on harm the company has suffered as a result of potential breaches of fiduciary duty by the company’s officers and directors.

If you currently own Under Armour stock and wish to obtain additional information—or would like to participate in a potential shareholder derivative action—please complete the form below for a free legal consultation.