Under Armour, Inc. – UA: SEC Investigation Update.
To access the full report, click on the PDF (previously only available to clients).
Probes Reporter was early in warning about this risk. Below is an excerpt of our latest SEC Investigation Update, published 20-Aug-2019 --
An undisclosed SEC investigation is again confirmed. The first Freedom of Information Act (FOIA) response indicating an SEC investigation was dated 05-Jul-2017. On-going enforcement proceedings confirmed on appeal multiple times since, most recently on 31-Jul-2019. For this reason, Under Armour, Inc. remains on our Watch List of companies with confirmed, undisclosed SEC investigations.
We now have clear evidence that Under Armour did not disclose two SEC investigations from the recent past, one of which remains ongoing as of 31-Jul-2019. Further, we now have a document that shows the SEC investigated Under Armour for the data breach disclosed in Mar-2018. That SEC investigation, which was never disclosed, ended on 15-Oct-2018. The danger that remains for investors is an older investigation that dates back to the summer of 2017.
- In the summer of 2017, we first warned of an undisclosed SEC probe at Under Armour. In a report later published on 12-Dec-2017, we openly wondered if it somehow related to the abrupt CFO departure in Jan-2017 and repeated earnings misses since. See, Take a Closer Look at Under Armour’s Abrupt CFO Departure.
- Later, on 29-Mar-2018, on a Thursday, and right after investors had left for a three-day weekend, Under Armour dropped a bomb with the announcement of a sizable data breach. We wrote that up in this report, Under Armour: It Appears the Data Breach Has Management Rattled, published 02-Apr-2018. We now have a document that shows the SEC investigated the data breach, even though the company never disclosed it.
To access the full report click the link above.