Aberdeen, Scotland – Lawyers representing a pension fund for workers in three Scottish councils have successfully secured a $434 million settlement from US sportswear company Under Armour. The North East Scotland Pension Fund (NESPF), which oversees a scheme for 71,000 workers from Aberdeen, Aberdeenshire, and Moray councils, accused Under Armour of making false statements about its products, resulting in financial losses for investors.
The settlement, still pending court approval, comes just before a jury trial was set to begin in the United States. NESPF served as the lead plaintiff in a class-action lawsuit against Under Armour, a legal recourse taken by one party on behalf of a larger group that has suffered similar losses.
The lawsuit, handled by US firm Robbins Geller Rudman and Dowd LLP, marks a significant victory for investors, sending a strong message to directors and officers of public companies. Mark Solomon, a partner in the firm representing NESPF, emphasized the pivotal role that pension funds can play in holding companies accountable for their actions.
Under Armour, headquartered in Baltimore, Maryland, maintains its innocence and refutes the accusations made against it. The company clarified that the settlement should not be interpreted as an admission of any wrongdoing, highlighting the costs and risks inherent in legal disputes.
The agreement entails Under Armour paying $434 million to resolve claims brought by shareholders who purchased the company’s publicly-traded shares from September 16, 2015, to November 1, 2019. The company’s chief legal officer, Mehri Shadman, emphasized their belief in the appropriateness of their sales practices, accounting practices, and disclosures, denying any misconduct in the case.
By reaching this settlement, Under Armour aims to put an end to a more than seven-year-old legal matter, allowing the company to shift its focus to strategic priorities free of the distractions posed by prolonged litigation. This resolution offers clarity and certainty for the business moving forward.