$434 Million Record-Setting Recovery in Under Armour Securities Fraud Suit

One of the Top 50 Securities Class Action Recoveries in U.S. History

Robbins Geller Rudman & Dowd LLP secured a $434 million recovery in a securities fraud class action against Under Armour, Inc. and CEO Kevin Plank. The settlement, first announced in June 2024, received final approval from the court on November 7, 2024. The settlement was announced just weeks before a jury trial was scheduled to commence in the United States District Court for the District of Maryland.

The settlement is the second largest ever securities class action recovery in the Fourth Circuit and is among the top 50 largest such recoveries in U.S. history, according to Institutional Investor Shareholder Services

“This outcome not only recovered substantial losses but also introduced critical governance reforms, such as a three-year separation of the Chairman and CEO roles, aligning with investor demands for accountability,” said Mark Solomon, a Robbins Geller partner and counsel to the lead plaintiff.

The Key Allegations in the Under Armour Case

The case alleges that Under Armour and former CEO Kevin Plank violated U.S. securities law by making materially false and misleading statements and failing to disclose adverse information about Under Armour’s business and operations to investors. The allegations focus on Under Armour’s alleged “pull-forward” revenue recognition scheme that masked declining demand for its products. Investors had been repeatedly assured, according to the allegations in the suit, that Under Armour’s 26-consecutive quarter 20% year-over-year revenue growth streak was “safely intact,” when demand for the company’s products was in decline.

The suit claims that the company’s financial results were manipulated to mask this decline by pulling sales forward from future quarters and other suspect sales practices.

In 2017, Under Armour revealed its lower than anticipated fourth quarter revenues and a drop in quarterly revenue growth of over 20% for the first time in 26 quarters. The company also announced the unexpected resignation of its CFO after only 13 months on the job. After this news was made public, the price of Under Armour shares fell over 25%. The investor suit followed.

“Our Firm approaches every case ready to present it to a jury,” said Robert R. Henssler, Jr., Robbins Geller partner and lead trial counsel. “The team’s preparation and trial-readiness was critical to obtaining a recovery this size.”

The following Robbins Geller attorneys represented investors in this case: Matthew I. Alpert, X. Jay Alvarez, Stephen R. Astley, Michael J. Dowd, T. Alex B. Folkerth, Luke Goveas, Robert R. Henssler, Jr., Christopher R. Kinnon, Andrew T. Rees, Sam S. Sheldon, Elizabeth A. Shonson, and Mark Solomon.

About Robbins Geller

Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms, representing plaintiffs in securities fraud, shareholder derivative, antitrust, corporate takeover, and consumer fraud and privacy cases. With 200 lawyers in 10 offices, Robbins Geller is one of the world’s largest plaintiffs’ firms and the Firm’s attorneys have obtained many of the largest securities, antitrust, and consumer class action recoveries in history.

Over the last decade, our Firm has been ranked #1 on the ISS Securities Class Action Services law firm rankings for six out of the last ten years for securing the most monetary relief for investors. In the last four years, Robbins Geller recovered $6.6 billion for investors in securities-related class action cases – over $2.2 billion more than any other law firm during that time. The Firm secured the largest-ever securities fraud class action settlement – $7.2 billion – in In re Enron Corp. Securities Litigation. 

For media inquiries, please contact media@rgrdlaw.com or call (619) 338-3821.

In re Under Armour Securities Litigation, No. 1:17-cv-00388-RBD (D. Md.).