Safirstein Metcalf LLP: Under Armour, Inc. Misled Shareholders According to Class Action Lawsuit - UA

NEW YORK, April 18, 2017 (GLOBE NEWSWIRE) -- Safirstein Metcalf LLP announces that a class action complaint was filed against Under Armour, Inc. UA UAA ("Under Armour" or "UA") in the U.S. District Court for the District of Maryland. The complaint is brought on behalf of all purchasers of Under Armour securities between April 21, 2016 and January 30, 2017, for alleged violations of the Securities Exchange Act of 1934 by Under Armour's officers and directors.  Safirstein Metcalf is investigating potential breaches of fiduciary duty by management of Under Armour resulting from allegations that management may have issued materially misleading business information to the investing public.

If you are a concerned shareholder and would like more information about this matter, call 1-800-221-0015 or email info@SafirsteinMetcalf.com or at http://www.safirsteinmetcalf.com

According to the complaint, Under Armour officials issued a series of public statements touting an optimistic forecast for the company. The company's Chief Executive Officer, Kevin A. Plank, stated in an April 2016 press release that, "[w]ith this unrelenting consumer focus and ongoing investment, we are setting the foundation for our growth story over the next 20 years." Notably, soon after making these statements, Plank, according to the complaint, sold approximately 1.05 million shares of his Class C common stock, which was an unusual move, and departed from his prior selling activity. Despite dumping a large quantity of his personal holdings, Plank continued to maintain confidence in the company's growth, emphasizing its strong financial results for the second quarter of 2016 and boasting about the continued worldwide demand for Under Armour items. Lawrence P. Molloy, the company's Chief Financial Officer ("CFO"), added that he expected revenues to grow approximately 20% for the third quarter.

Around August 2016, Under Armour's growth began to slow after a slew of department store closures and the bankruptcy of The Sports Authority, despite Under Armour's prior positive assurances that the trend of steady sales growth would continue. On January 31, 2017, Under Armour announced weaker-than expected fourth quarter earnings, citing "numerous challenges and disruptions in North American retail." Subsequently, Molloy stepped down from his position, despite only serving as CFO for approximately 13 months. On this news, Under Armour's stock dropped 28% in pre-market trading, ultimately falling by $7.41 per share to close at $21.49 per share on January 31, 2017.

About Safirstein Metcalf LLP
Safirstein Metcalf LLP focuses it practice on shareholder rights. The law firm also practices in the areas of antitrust and consumer protection.  All of the Firm's legal endeavors are rooted in its core mission: provide investor and consumer protection.

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