UNDER ARMOUR ANNOUNCES AGREEMENT TO SETTLE CLASS ACTION LAWSUIT

BALTIMORE, 21 June 2024 /PRNewswire/ — Under Armour, Inc. (NYSE: UA, UAA) today announced that it has entered into an agreement in principle to settle the previously announced securities class action lawsuit brought in The United States District Court for the District Maryland (In connection with the securities dispute surrounding Under Armour). This lawsuit was originally filed in 2017.

The Company has consistently denied the allegations and has agreed to this agreement in principle, which, however, does not constitute an admission or finding of guilt or wrongdoing given the costs and risks associated with litigation.

Under the terms of the agreement, Under Armour will pay 434 million US dollars to settle claims on behalf of purchasers of Under Armour’s publicly traded stock from 16 September 2015To 1 November 2019. Under Armour has also agreed to two time-limited governance changes, which are detailed in the company’s Form 8-K filed with the SEC.

If the settlement is approved by the court, all claims against Under Armour and the other defendants in this matter would be resolved.

“We firmly believe that our sales practices, accounting practices and disclosures were appropriate and deny any wrongdoing in this case,” said Mehri ShadmanChief Legal Officer and Corporate Secretary of Under Armour. “Today’s announcement allows us to put this more than seven-year-old matter behind us, allowing us to avoid the ongoing distraction of litigation and provide certainty to the company at a time when we are executing on important strategic priorities.”

The agreement is subject to final documentation and final court approval.

The Company intends to settle the settlement amount in cash and/or by drawing on its 1.1 billion US dollars revolving credit facility. From March 31, 2024the company had 859 million US dollars of cash and equivalents. As previously announced, Under Armour had a provision of 100 million US dollars in provisions for litigation related to this matter. As a result of this agreement, the Company now expects that the total provision 434 million US dollars in the first quarter of the 2025 fiscal year. Following this agreement, the company expects to close the 2025 fiscal year with approximately 500 million US dollars in cash and cash equivalents and no outstanding loans under its 1.1 billion US dollars revolving credit facility.

About Under Armour, Inc.

Under Armour, Inc., based in Baltimore, Marylandis a leading innovator, marketer and distributor of branded apparel, footwear and accessories for sports. Under Armour’s innovative products and experiences are designed to enhance human performance and make athletes better athletes. For more information, visit http://about.underarmour.com.

Forward-looking statements

Some of the statements included in this press release are forward-looking statements. Forward-looking statements refer to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions with respect to matters that are not historical facts, such as statements in this press release with respect to the ability to reach agreement on definitive documents with respect to the proposed settlement and to obtain final court approval of the proposed settlement; the ability to satisfy the terms of the proposed settlement; the costs expected to be incurred and the source of funds to be used to resolve these matters; and our expectations regarding our future cash and liquidity projections. The forward-looking statements in this press release reflect our current views and assumptions as of the date of this press release with respect to future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause events or our actual activities or results to differ materially from those expressed in a forward-looking statement. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future events, results, actions, levels of activity, performance or achievements. Readers are cautioned not to place undue reliance on these forward-looking statements. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of unanticipated events.

QuE-Mail: Under Armour, Inc.