According to the The Wall Street Journal, prosecutors at the U.S. Justice Department, with help from civil investigators at the U.S. Securities and Exchange Commission (SEC), are investigating the books at Under Armour. The Baltimore-based sports-apparel brand is alleged to have embellished its results by shifting sales from quarter to quarter. It has acknowledged the investigation and said in a statement: “The company began responding in July 2017 to requests for documents and information relating primarily to its accounting practices and related disclosures, and the company firmly believes that its accounting practices and disclosures were appropriate.” However, a company in Baltimore, Murphy Falcon & Murphy, has filed a lawsuit in connection with the investigation, noting that UA should have disclosed the existence of the probe. The suit alleges that UA executives were motivated to shift revenues back and forth between quarters to keep a steady string of quarterly sales increases of more than 20 percent.

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