-
- Baltimore-based company received a Wells Notice last Wednesday from the SEC
- Under Armour stands behind “pull forward” sales tactics in question from 2015 and 2016
- Plan to pursue the notice and resolve the matter is in the works
Under Armour is standing its ground against the Securities and Exchange Commission. This past Wednesday, the sportswear company received a Wells Notice—an advanced notification of the SEC’s plan to take action— for its “pull forward” sales tactics and accounting methods during the 2015 and 2016 fiscal years.
In November 2019, the SEC and Justice Department began an investigation into the company’s questionable practices. Former executives admitted to redirecting goods to boost revenue and maintain a 26-quarter streak of 20% sales growth.
The company’s founder and former CEO, Kevin Plank, and current finance chief, David Bergman, also received notices. Under Armour has responded with confidence in its accounting practices and maintains that all actions taken were “appropriate.” The company plans to “pursue the Wells Notice process… [and] work toward a resolution of this matter.”
For more news and information, visit our website to stay up to date!
Sincerely,
Devin McQuillan
Associate, Creative Solutions
Contact:
516-541-6549 | Email