Under Armour, CEO Beat Securities Suit Over Sales Strategy Shift

Under Armour Inc.‘s founder has beaten claims that he pumped up the company’s value by hiding its shift from premium to discount sales, then sold $138 million in stock before it cratered on the news.

The proposed class action accused chairman and CEO Kevin A. Plank of cashing in while making misleading public statements that concealed the new strategy and the dwindling sales that led to it. It also named the sports apparel giant as a defendant.

The discounts sacrificed the company’s premium reputation for a short-term sales boost, and its stock fell 28% in a single day when ...