First, Under Armour CEO Kevin Plank Resigns—Now, The Company Is Under Investigation By The Justice Department And SEC

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Sports-apparel maker, Under Armour, is the subject of federal investigations by the Department of Justice and the Securities and Exchange Commission over its accounting practices, according to the Wall Street Journal.

the subject of federal investigations by the Department of Justice and the Securities and Exchange CommissionThe regulators are probing and examining Under Armour’s accounting practices to determine if the sportswear maker shifted sales from one quarter to another in an effort to appear healthier. The allegation centers on whether executives knowingly tried to mislead investors about the financial condition of the company.

“The company began responding in July 2017 to requests for documents and information relating primarily to its accounting practices and related disclosures,” Under Armour said in response to thecoverage. “The company firmly believes that its accounting practices and disclosures were appropriate.” Under Armour went through three chief financial officers in about one year’s time period. , Under Armour’s outlet stores and North American website have been under pressure due to lower sales volume.

The last couple of years have been challenging for Under Armour. The company had excess inventory, which required a costly restructuring that led to a loss of $200 million. Due to a shift in consumer demands and the gravitation toward athleisure-wear products, such as Lululemon, the company was forced to layoff 400 employees to cut costs. previously reported that Plank and other corporate executives ran a frat-house type of environment.

At the time of Plank’s announcement to step down as CEO, shareholders were enthralled with his decision and the shares sharply rose. Plank owned 33.8 million shares of Under Armour stock. After the announcement, the stock price jumped and so did Plank’s net worth, as he gained an additional $89 million. Today, the company’s share price is down about 15%, in light of the recent news.

 

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Man, what do you have to do to get investigated by THIS administration? Did they sell drugs to fetuses? Or, god forbid, did they not criticize Obama racistly enough?

So when will the NCAA announce they're investigating Maryland and UA paying their players? Or when will the FBI's story about all that break? Or are they too busy with other more important matters right now? AskingForAFriend

Sheesh, here I thought only 45 was in the newz all day

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Under Armour Shares Down 15% In Pre-Market Trading Over Reports Of Federal Accounting ProbeThe sportswear company confirmed on Sunday it is under criminal investigation by the Justice Department and U. S. Securities and Exchange Commission over allegations of improper accounting practices. 🤔 Overpriced, poor quality products get you here ! Mi loose offa dem & I am dumping my shares pronto!!!
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