comscore Under Armour settles SEC charges for $9 million | Honolulu Star-Advertiser
Top News

Under Armour settles SEC charges for $9 million

                                Under Armour clothes are displayed at a Kohl’s store in Colma, Calif.


    Under Armour clothes are displayed at a Kohl’s store in Colma, Calif.

NEW YORK >> Sportswear company Under Armour has settled with the Securities and Exchange Commission and agreed to pay $9 million in fines related to misleading its revenue growth to investors from the third quarter of 2015 through the fourth quarter of 2016, the agency said today.

According to the SEC filing, Under Armour used a “pull forward” sales tactic to pull forward $408 million in revenue in existing orders. The SEC said that the company made positive statements regarding its revenue growth rate and the factors contributing to the revenue growth rate, without disclosing the significant impact on revenue from its use of pull forward tactics.

Under Armour said in a statement that the settlement relates to the company’s disclosures and does not include any allegations from the SEC that sales during these periods did not comply with “generally accepted accounting principles.”

“The company neither admitted nor denied the SEC’s charges. The settlement resolves all outstanding SEC claims, ” the Baltimore company said.

Under Armour has agreed to cease and desist the practice, the SEC said in its filing.

Comments (1)

By participating in online discussions you acknowledge that you have agreed to the Terms of Service. An insightful discussion of ideas and viewpoints is encouraged, but comments must be civil and in good taste, with no personal attacks. If your comments are inappropriate, you may be banned from posting. Report comments if you believe they do not follow our guidelines.

Having trouble with comments? Learn more here.

Click here to see our full coverage of the coronavirus outbreak. Submit your coronavirus news tip.

Be the first to know
Get web push notifications from Star-Advertiser when the next breaking story happens — it's FREE! You just need a supported web browser.
Subscribe for this feature

Scroll Up