NEW YORK, Feb. 24, 2017 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Under Armour, Inc. ("Under Armour" or the "Company") (NYSE: UA), (NYSE: UAA) and certain of its officers. The class action, filed in United States District Court, District of Maryland, and docketed under 17-cv-00452 is on behalf of a class consisting of investors who purchased or otherwise acquired Under Armour securities, seeking to recover compensable damages caused by defendants' violations of the Securities Exchange Act of 1934.
If you are a shareholder who purchased Under Armour securities between April 21, 2016 and January 30, 2017, both dates inclusive, you have until April 10, 2017 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Under Armour, Inc. develops, markets, and distributes branded performance products for men, women, and youth. The Company designs and sells a broad offering of apparel and accessories made of synthetic microfibers.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that the Company's revenue and profit margins would not be able to withstanding the heavy promotions, high inventory levels and ripple effects of numerous department store closures and bankruptcy of The Sports Authority, even as Under Armour nevertheless purported to be a growth company that would continue to develop and market game-changing products.
Under Armour has historically touted its aspirations to continue growing 20% annually, having set a goal of $7.5 billion in annual revenue by 2018, however overall sales grew just 12% in the fourth quarter of 2016, with revenues in North American only growing 6%, the weakest increase in the past eight years. Despite continued guidance from April 21, 2016 through October 25, 2016, that the Company would maintain its trend of greater than 20% sales growth, none of these statements had any basis in fact and were false when made.
On January 31, 2017, Under Armour revealed its lower-than-anticipated fourth-quarter revenues and announced the unexpected resignation of Chief Financial Officer ("CFO") Chip Molloy. Roughly $2.7 billion or one fifth of Under Armour's market capitalization disappeared on January 31, 2017 after Under Armour said its quarterly revenue growth dropped more than 20% for the first time in 26 quarters and that it was replacing its CFO after only 13 months.
On this news, Under Armour's Class A share price fell $7.45, or 25.74%, to close at $21.49, while the Company's Class C share price fell $5.87, or 23.4%, to close at $19.22 on January 31, 2017.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
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SOURCE Pomerantz LLP