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.
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