Under Armour Stands By Accounting Practices Despite Wells Notices
In a Monday filing, Under Armour reported it received Wells Notices from the Securities and Exchange Commission in relation to an investigation that’s been underway since July of 2017 into the retailer’s accounting practices. A Wells Notice means that the investigation has been completed and the SEC might bring civil action against the company; it also gives the retailer a chance to respond with additional information before the SEC decides to formally charge the parties. The Wells Notices were directed to Under Armour as a company, former CEO Kevin Plank and CFO David Bergman, and are related to Under Armour’s use of “‘pull forward’ sales” — customer sales that are executed earlier than planned — to meet its sales targets. The company said in the SEC filing that it stands by its actions and intends to respond to the SEC. Read more at Retail Dive.
