Under Armour Deadline Alert: Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $50,000 In Under Armour, Inc. To Contact The Firm
New York, New York--(Newsfile Corp. - November 14, 2019) - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Under Armour, Inc. (NYSE: UAA) (NYSE: UA) ("Under Armour" or the "Company") of the January 6, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
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If you invested in Under Armour stock or options between August 3, 2016 and November 1, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/UAA. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
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The lawsuit has been filed in the U.S. District Court for the District of Maryland on behalf of all those who purchased Under Armour securities between August 3, 2016 and November 1, 2019 (the "Class Period"). The case, Patel v. Under Armour, Inc. et al., No. 19-cv-03209 was filed on November 6, 2019, and has been assigned to Judge Richard D. Bennett.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Under Armour shifted sales from quarter to quarter to appear healthier, including to keep pace with their long-running year-over-year 20% net revenue growth; (2) the Company had been under investigation by and cooperating with the U.S. Department of Justice and U.S. Securities and Exchange Commission since at least July 2017; and (3) as a result, defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
On November 3, 2019, The Wall Street Journal reported that the U.S. Department of Justice and Securities and Exchange Commission were investigating Under Armour's accounting of revenue and related disclosures. The investigations concern whether the Company shifted sales from quarter to quarter to appear healthier. Though Under Armour had reported at least 20% year-over-year revenue growth for 26 straight quarters, the Company missed its sales targets in the final quarter of 2016 and has been struggling with weak sales and restructuring ever since.
On this news, the price of Under Armour Class A stock (UAA) fell from $21.14 per share on November 1, 2019 to $17.14 per share on November 4, 2019: a $4.00 or 18.92% drop. The price of Under Armour Class C stock (UA) fell $3.47, or 18.4%, to close at $15.44 on November 4, 2019.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Under Armour's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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