NEW YORK (AP) — Under Armour said Monday that it received a warning from U.S. regulators that the company and two of its executives could be punished over past accounting practices.
The sporting goods company said in a government filing Monday that the warning, known as a “Wells Notice," was sent last week from the U.S. Securities and Exchange Commission. The two executives who received the notice were founder Kevin Plank and Chief Financial Officer David Bergman.
A Wells Notice is a warning that a company or individual could face enforcement action.
The SEC is focusing on the company's accounting practices from the middle of 2015 to the end of 2016, specifically the disclosure of “pull forward” sales, where a sale is executed earlier than planned.
Under Armour said in the filing that the actions of the company and its executives “were appropriate” and that they are responding to the SEC. Under Armour Inc. did not immediately respond to a request for comment Monday morning.
Plank, who founded Under Armour in 1996, stepped down as CEO last year and is the company’s executive chairman and brand chief.
Shares of the Baltimore-based company slipped about 1% Monday morning.
Before you consider Under Armour, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Under Armour wasn't on the list.
While Under Armour currently has a "Reduce" rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Click the link below and we'll send you MarketBeat's guide to investing in 5G and which 5G stocks show the most promise.
Get This Free Report