In a regulatory filing, Under Armour disclosed that on July 22, Kevin A. Plank, the company’s Executive Chairman & Brand Chief, and David E. Bergman, the company’s CFO received a “Wells Notice” from the Staff of the U.S. SEC relating to the company’s previously-disclosed SEC investigation. The Wells Notices relate to the company’s disclosures covering the third quarter of 2015 through the period ending December 31, 2016, regarding the use of “pull forward” sales in connection with revenue during those quarters. Specifically, the SEC Staff is focused on the company’s disclosures regarding the use of pull forward sales in order to meet sales objectives. The SEC Staff has not alleged any revenue recognition or other violations of generally accepted accounting principles relating to that or any other period. The company and the Executives maintain that their actions were appropriate and intend to pursue the Wells Notice process, which will include the opportunity to respond to the SEC Staff’s position, and also expect to engage in a dialogue with the SEC Staff to work toward a resolution of this matter.
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