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Thu May 13, 2021, 04:17 PM

Under Armour founder sold $138 million in stock during time period company allegedly misled

Source: Washington Post

Kevin Plank gushed about his business on a call with Wall Street analysts in October 2015. Under Armour, the sports apparel maker Plank founded two decades earlier in the basement of his grandmother’s D.C. townhouse, had grown into a global juggernaut, he said, securing endorsements with some of the world’s biggest sports stars, amassing data on millions of fitness app users and growing sales more than 20 percent every quarter for more than five years.

The company’s track record of rapid profit and revenue growth “gives us great confidence for the future,” Plank said on the call. “We are just getting started.” Six days later, Plank entered into a scheduled stock selling plan — a common way for public company executives to sell stock in accordance with federal regulations — that netted him $138 million over the following six months, a period when the company continued to report a fast rise in revenue.

The public comments and financial statements of Under Armour executives from late 2015 to early 2017 were the subject of a four-year accounting probe by the U.S. Securities and Exchange Commission, which charged Under Armour with violating securities laws. In its May 3 order, the SEC said the Baltimore-based company failed “to disclose material information about its revenue management practices that rendered statements it made misleading.” Under Armour agreed to pay $9 million to settle the claims without admitting or denying the charges. Neither Plank nor any other executive was charged.

A group of pension retirees and other investors who originally filed a class-action lawsuit against Under Armour in 2017 are now citing the settlement, in a letter to a federal judge, as a reason the litigation should move forward. The suit alleges that Under Armour artificially increased quarterly revenue numbers to conceal slowing sales and that Plank personally profited from the company’s “artificially inflated” valuation. Plaintiffs allege that Plank adopted his prearranged stock trading plan at a time when he knew about an internal effort to mislead investors.

Read more: https://www.washingtonpost.com/business/2021/05/13/under-armour-stock-sale-sec-kevin-plank/



Full headline: Under Armour founder sold $138 million in stock during time period company allegedly misled investors about slowing sales

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Reply Under Armour founder sold $138 million in stock during time period company allegedly misled (Original post)
BumRushDaShow May 13 OP
PoliticAverse May 13 #1
Scalded Nun May 13 #2
TheRickles May 13 #4
bucolic_frolic May 13 #3

Response to BumRushDaShow (Original post)

Thu May 13, 2021, 04:26 PM

1. That seems a little Under Handed. n/t

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Response to BumRushDaShow (Original post)

Thu May 13, 2021, 04:56 PM

2. This whole business of paying a fine but denying wrongdoing is bullshit

Start jailing some of these crooks and this might slow down (it will never stop).

What is the difference between this and bribing your way out of a bad legal situation?

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Response to Scalded Nun (Reply #2)

Thu May 13, 2021, 07:50 PM

4. Exactly. When was the last time an uber-wealthy white-collar criminal went to jail?

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Response to BumRushDaShow (Original post)

Thu May 13, 2021, 05:18 PM

3. Martha. Stewart. /nt

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