BALTIMORE (Legal Newsline) – Under Armour is facing a class action alleging the company submitted false and misleading reports to its shareholders in violation of federal law.
Phillip Kraft, individually and on behalf of all others similarly situated, filed a complaint Dec. 9 in the U.S. District Court for the District of Maryland against Under Armour Inc., CEO Kevin Plank and Chief Operating Officer Patrik Frisk and others alleging violation of the Exchange Act of 1934.
According to the class action, Kraft alleges Under Armour's reports to shareholders were "materially false and/or misleading because they misrepresented and failed to disclose ... adverse facts pertaining to the company’s business, operations and prospects, which were known to defendants or recklessly disregarded by them."
Kraft alleges Under Armour's failure included not reporting that the company shifted sales from quarter to quarter or had been under investigation by the Securities and Exchange Commission and the U.S. Department of Justice for its accounting practices. The suit states when the Wall Street Journal reported on the investigation in November, the prices of Class C shares fell $4 per share and damaged investors. The plaintiff alleges he and the class have suffered "significant losses and damages."
Kraft seeks monetary relief, a trial by jury and all other proper relief. He is represented by Steven Toll, Daniel Sommers and S. Douglas Bunch of Cohen Milstein Sellers & Toll PLLC in Washington, D.C.
U.S. District Court for the District of Maryland case number 1:19-CV-03502-RDB