Under Armour, a well-known American sportswear company, recently announced a settlement to resolve a class action lawsuit. This lawsuit accused Under Armour of improper sales and accounting practices. This article provides the latest updates on the Under Armour Class Action 2024, including the settlement amount, payment dates, and who is eligible to claim.
Under Armour Class Action 2024
A lawsuit was filed against Under Armour for allegedly misrepresenting its financial health to investors. To avoid further litigation costs, Under Armour decided to settle the case. The company also mentioned that it plans to focus on future business strategies.
Under Armour was accused of inflating its stock prices to mislead investors. As part of the settlement, Under Armour has agreed to certain reforms, including possibly separating the roles of Chief Executive Officer and Chairperson for at least three years. This is intended to improve corporate governance and ensure leadership independence.
Under Armour Class Action Settlement Amount
In 2017, a lawsuit was filed against Under Armour for misleading investors about its financial health. The company was accused of violating U.S. security laws. The case has now been settled for $434 million.
The settlement will be paid from the company’s cash reserves and, if necessary, from a $1.1 billion revolving credit facility. Here are the financial details related to the settlement:
| Financial Aspect | Amount |
|---|---|
| Cash available | $859 million |
| Settlement Amount | $434 million |
| Projected remaining cash after settlement | $500 million |
| Revolving Credit Facility Limit | $1,100 million |
If the court approves the settlement, the claims against Under Armour and other defendants will be resolved.
Under Armour Class Action Payment Dates
Here are the key payment dates for the Under Armour Class Action:
- The settlement amount of $434 million will be paid to claimants who traded Under Armour shares publicly between September 16, 2015, and November 1, 2019.
- As of March 31, 2024, Under Armour reported $859 million in cash and equivalents.
- The company expects to have around $500 million in cash or equivalents by the end of fiscal 2025 after the settlement.
The company plans to fund the settlement from its cash reserves and, if necessary, use the $1.1 billion revolving credit facility. A trial is set to begin in July 2024 if the settlement is not approved.
Under Armour Class Action Eligibility
According to Section 245, the following groups are eligible to file a class action lawsuit:
- Companies with limited shares: 100 members and 100 depositors.
- Companies without share capital: One-fifth of the total members and 100 depositors.
Applicants must have paid all dues on their shares. For more details, check the original lawsuit website or consult a legal professional.
All We Know
Under Armour was accused of improper sales and accounting practices and misleading investors. Despite initially denying the accusations, the company agreed to a $434 million settlement to avoid trial risks and provide stability for stakeholders. The trial is set for July 2024 if the settlement is not approved.
Under Armour plans to implement government reforms and develop strategies to grow the organization. For the latest updates, visit the official lawsuit web portal.
1. What is the Under Armour Class Action 2024 about?
The lawsuit accuses Under Armour of misleading investors about its financial health and improper sales practices.
2. How much is the Under Armour settlement amount?
The settlement amount is $434 million.
3. Who is eligible to claim the settlement?
Investors who traded Under Armour shares publicly between September 16, 2015, and November 1, 2019.
4. How will Under Armour fund the settlement?
The settlement will be funded from the company’s cash reserves and, if necessary, a $1.1 billion revolving credit facility.
5. When will the trial start if the settlement is not approved?
The trial is set to begin in July 2024.