Sportswear Giant to Pay Out $434m in Class Action Case
- Under Armour agrees to £343m settlement in shareholder lawsuit
- CEO Kevin Plank accused of deceptive information regarding financial status
- Settlement avoids trial planned for July
- Under Armour settled with SEC for $9m in 2021
- Company to fund settlement using cash reserves and revolving credit facility
- Maintains separation of chair and CEO roles for at least three years
- Denies all allegations of wrongdoing
Under Armour has agreed to pay out $434m (£343m) to resolve a class action lawsuit that accused the sportswear giant and its CEO Kevin Plank of misleading shareholders about revenue growth projections. The proposed settlement, pending court approval, will avoid a trial planned for July. The company maintains it denies all allegations of wrongdoing and describes the settlement as a strategic decision to avoid uncertainties of litigation rather than an admission of fault. Under Armour settled with the Securities and Exchange Commission (SEC) for $9m (£7.1m) in 2021, admitting to failing to inform investors about a practice of pulling forward orders to boost revenue figures. The settlement will be funded using cash reserves and a $1.1bn revolving credit facility.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Under Armour’s lawsuit settlement and the company’s response without any significant issues related to digressions, misleading information, sensationalism, redundancy, or personal perspective presented as a universally accepted truth. It also includes relevant details about the case and quotes from a lead counsel for shareholders.
Noise Level: 3
Noise Justification: The article provides relevant information about Under Armour’s lawsuit settlement and the company’s response, but it also includes an unrelated sentence at the end mentioning Uber Eats features which does not fit the context of the main topic.
Financial Relevance: Yes
Financial Markets Impacted: Under Armour’s stock price and investor sentiment
Financial Rating Justification: The article discusses Under Armour’s settlement in a class action lawsuit and its impact on the company’s financial situation, which is relevant to financial topics as it involves a significant amount of money and affects the company’s reputation and future legal contingencies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
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