Under Armour Under Investigation

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SpacemanSpiff
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Under Armour Under Investigation

#1 Post by SpacemanSpiff » Mon Jul 27, 2020 10:13 am

https://www.accountingtoday.com/article ... 5865627541

This might not be accessible to all, so I'll pull out a couple of things:
Under Armour Inc. said a pair of top executives, including founder Kevin Plank, has been named in a federal probe of the company’s accounting, sending shares of the athleticwear maker down.

Plank and Chief Financial Officer David Bergman received Wells Notices informing them that the U.S. Securities and Exchange Commission is likely to “allege certain violations of the federal securities laws,” Under Armour said Monday in a regulatory filing. Under Armour also received a notice informing it that the agency may file an enforcement action against the company.

The disclosure expands upon comments from the company in November, when it revealed that it had been under federal investigation for more than two years. The situation has roiled the Baltimore-based company as it has grappled with lackluster sales amid the coronavirus pandemic and a CEO change, with Plank handing the reins to Patrik Frisk earlier this year.
One of the things being looked at is the use of "pull-forward sales" in order to meet sales objectives (i.e., they might be counting sales early before they should).

Plank is a big Maryland booster. He reportedly bankrolled the $50 million buyout that Maryland had to pay to the ACC in order to bolt to the bigger bucks of the Big 10.
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