​Under Armour to pay €434 million settlement in shareholder lawsuit

Following a seven-year legal dispute between Under Armour (UA) and a group of shareholders, UA has agreed to pay $434 million in settlement. This should end the legal dispute from 2017, in which it was alleged that the company had misled shareholders about its sales growth to meet Wall Street forecasts.

UA also made it clear that it has always denied the allegations and that the settlement does not constitute an admission of guilt or wrongdoing, given the costs and risks of litigation.

Under the terms of the agreement, the company will pay $434 million to settle claims brought on behalf of purchasers of UA’s publicly traded shares from Sept. 16, 2015, to Nov. 1, 2019. Under Armour has also agreed to two governance changes for a specified time period. If approved by the court, the settlement would resolve all claims against Under Armour and other defendants in this matter.

“We firmly believe that our sales practices, accounting practices, and disclosures were appropriate, and deny any wrongdoing in this case,” said Mehri Shadman, Under Armour’s Chief Legal Officer and Corporate Secretary. “Today’s announcement allows us to move past this more than seven-year-old matter so we can avoid the ongoing distraction of litigation and provide certainty to the business at a time when we are executing on important strategic priorities.”