Under Armour (UA and UAA) $434M Investor Settlement
Under Armour (UA and UAA) has agreed to settle for $434M with investors to resolve claims that it misled them about revenue growth and business prospects.
Outline:
In 2017, Under Armour claimed it could maintain over 20% revenue increases. However, these claims were later questioned following weaker-than-expected earnings reports and executive resignations. Following this, $UA and $UAA dropped and Under Armour faced a lawsuit from investors.
Timeline:
On April 21, 2016: Under Armour released its Q1 2016 earnings, highlighting robust revenue growth and projecting strong future sales.
On January 31, 2017: Under Armour announced weaker-than-expected Q4 earnings and the unexpected resignation of its CFO.
On the same day, its stock price dropped 26%.
On February 3, 2017: Shareholders filed a suit against Under Armour.
Background:
On April 21, 2016, Under Armour announced strong earnings for the Q1, making it the 26th quarter in a row with over 20% revenue growth.
The company said it expected to keep growing in 2016 despite internal challenges like excess inventory and the bankruptcy of a major retailer, The Sports Authority.
By January 31, 2017, the truth came out when Under Armour announced weaker-than-expected earnings for Q4 2016 and the resignation of CFO Lawrence Molloy.
This news caused the stock price to drop 26% on January 31, 2017.
On February 10, 2017, a shareholder sued the company, claiming it had misled investors about its financial health and business prospects.
What can investors expect now?
Under Armour (UA and UAA) has agreed to settle for $434M with investors to resolve claims that it misled them about its revenue growth and business prospects.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Frequently Asked Questions
All persons who purchased or otherwise acquired Class A and Class C common stock of Under Armour between September 16, 2015 and November 1, 2019.
Find out how class action settlements work in this article.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.24 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $0.96 per share.
11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:
Prepare documents for your payout
Audit the claim and make sure you get the maximum possible payout
File a claim with the settlement administration
Correspond with the settlement administration to resolve emerging issues
Deliver payout directly to your brokerage account
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.