Americans to receive one-time payment from $434 million Under Armour settlement – see if you’re eligible
ELIGIBLE Americans can expect a payment soon after Under Armour agreed to a $434 settlement.
It comes after a 2017 class action lawsuit against the sports apparel maker.
GettyUnder Armour has agreed to a $434 million settlement[/caption]
Under Armour announced on Friday it has agreed to pay $434 million to settle a 2017 class action lawsuit.
Plaintiffs in the lawsuit accused the company of defrauding shareholders about its revenue growth to meet Wall Street forecasts.
The $434 million settlement is subject to court approval but will affect owners of Under Armour shares.
Under Armour is a publicly traded company under the ticker UAA whose stocks are part of some Americans’ retirement plans and brokerage accounts.
The shareholder lawsuit accused the apparel maker and its CEO Kevin Plank of intentionally misleading them about the company’s fiscal health.
Under Armour has consistently denied the accusations and has not admitted any wrongdoing by entering the settlement agreement.
How the $434 million will be distributed remains to be seen.
This isn’t the first time Under Armour has paid out over claims it misled investors.
In 2021, agreed to pay $9 million following a Securities and Exchange Commission (SEC) investigation.
The investigation found Under Armour had “pulled forward” a total of $408 million in existing orders in the second half of 2015 without disclosing this to investors.
MORE SETTLEMENTS
Under Armour is not the only company paying out following a class action lawsuit.
Real Good Foods has agreed to settle a class action lawsuit over spam texts sent to customers’ phones.
The frozen foods supplier, stocked in major retailers like Walmart and Target, allegedly sent unsolicited texts to customers even after they attempted to opt-out.
Class members can choose between two payment options and have until July 30 to submit a claim online.
What's a class-action settlement?
Class action lawsuits offer groups of people, or 'classes,' a way to band together in court.
These suits are often brought by one or a few people who allege a company or other entity has wronged a large group of people.
When a suit becomes a class action, it extends to all “class members,” or people who may have similar complaints to those who filed the suit.
Companies often settle class actions – offering payment to class members who typically waive their right to pursue further legal action by accepting money.
These payout agreements frequently include statements by the defendant denying wrongdoing. Companies tend to settle class actions to avoid the costs of further litigation.
Pollution, discrimination, or false advertising are a few examples of what can land a class action on a company’s doorstep.
Meanwhile, Capital One bank customers could get their share of a $16 million settlement.
The bank has agreed to the payments to resolve claims it wrongfully charged customers extra surcharges.
These fees were for return checks or ACH debit transactions charged between September 1, 2015, and January 12, 2022.
Current customers in this settlement will have their payments automatically credited to their accounts.
Amazon has also agreed to settle a class action suit against them with a $3 million pot.
And a $20 million retirement settlement is seeing payouts of up to $4,000 per claimant.
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