Under Armour Inc. said a pair of top executives has been namedin a federal probe of the company's accounting, sending shares ofthe athletic-wear maker down.

Founder Kevin Plank and CFO David Bergman received Wells Noticesinforming them that the U.S. Securities and Exchange Commission(SEC) is likely to "allege certain violations of the federalsecurities laws," Under Armour said Monday in a regulatory filing.Under Armour also received a notice informing it that the agencymay file an enforcement action against the company.

The disclosure expands upon comments from the company inNovember, when it revealed that it had been under federalinvestigation for more than two years. The situation has roiled theBaltimore-based company as it has grappled with lackluster salesamid the coronavirus pandemic and a CEO change, withPlank handing the reins to Patrik Frisk earlier this year.

Under Armour and the executives "maintain that their actionswere appropriate," according to the latest filing. They intend torespond to the Wells Notices and "engage in a dialogue" with theSEC to resolve the matter.

The Wells Notices, which the SEC uses to inform investigationsubjects that it intends to bring enforcement actions against them,relate to sales that were allegedly pulled forward during a periodfrom the third quarter of 2015 through the end of 2016, UnderArmour said. The SEC is "focused on the company's disclosuresregarding the use of pull-forward sales in order to meet salesobjectives," but it is not alleging revenue recognition violations,the company said.

Under Armour stock fell 1.3 percent, to $10.77 a share, at 9:34a.m. Monday in New York. Through last Friday, the shares hadslumped 49 percent so far this year.

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