There is no current “Connected Fitness Lawsuit Settlement” from Under Armour. However, there is a major Under Armour settlement that shareholders should know about: a $434 million securities class action settlement announced in July 2024.
If you purchased Under Armour stock between September 16, 2015, and November 1, 2019, you may be eligible to claim a portion of this settlement fund. The settlement resolves allegations that CEO Kevin Plank and CFO Chip Molloy misled investors about the company’s financial health and inventory practices.
Table of Contents
- Who Qualifies for the Under Armour Securities Settlement?
- The Allegations and What Investors Were Told
- Settlement Timeline and Key Dates
- How to File Your Claim and What Documentation You’ll Need
- Important Limitations—What This Settlement Covers and What It Doesn’t
- How the Settlement Amount Was Determined
- What’s Happened to Under Armour Since the Settlement
Who Qualifies for the Under Armour Securities Settlement?
The Under Armour settlement applies exclusively to purchasers of the company’s publicly traded stock during a specific window: September 16, 2015, through November 1, 2019. This includes anyone who bought shares directly, held them in a retirement account like a 401(k) or IRA, or owned them through an investment fund. You do not need to have sold your shares during this period—the settlement covers anyone who held stock at any point during those dates.
For example, if you purchased 100 shares in January 2017 and still hold them today, or if you sold them in 2020, you remain eligible as long as your purchase occurred within the class period. To verify your eligibility, you’ll need documentation showing your stock purchase dates and quantities. Brokers, investment firms, and retirement account custodians have records of all transactions, and you can typically access this information through your account online or by contacting customer service directly. The settlement administrator has created a dedicated website—underarmoursecuritieslitigation.com—where eligible shareholders can verify their status and file claims.
The Allegations and What Investors Were Told
The lawsuit alleged that Under Armour’s leadership deliberately misrepresented the company’s financial condition and business practices to investors. Specifically, CEO Kevin Plank and CFO Chip Molloy were accused of misleading the market about revenue recognition practices and inventory management during a period when the company faced significant operational challenges. Between 2015 and 2019, Under Armour experienced slower growth than its competitors and struggled with excess inventory, but investors claimed they were not fully informed about the severity of these issues.
The investors who filed the lawsuit argued that if they had known the true state of Under Armour’s finances, they would not have purchased stock at the inflated prices being offered. However, Under Armour has not admitted any wrongdoing as part of this settlement. The company and the executives involved neither conceded to nor denied the allegations—this is standard practice in securities settlements and does not mean the allegations are proven or disproven. The settlement amount reflects a negotiated resolution rather than a court determination of guilt.
Settlement Timeline and Key Dates
The $434 million settlement was officially announced on July 12, 2024, providing shareholders with a concrete resolution to years of litigation. The settlement administrator, a neutral third party, manages the claims process and distributes funds to eligible claimants. The critical dates to remember are the class period (September 16, 2015 – November 1, 2019) for determining eligibility and the deadline for filing your claim, which typically comes several months after the settlement is formally approved by the court.
Settlement approval timelines vary, but shareholders should monitor the official settlement website regularly for updates about key deadlines, including the claim submission deadline and the estimated date funds will be distributed. Missing the claim deadline means forfeiting your share of the settlement entirely, so it’s essential to mark important dates in your calendar and submit your claim documentation well before the deadline. While an exact distribution timeline hasn’t been provided in the available information, securities settlements of this size typically complete distributions within 6 to 12 months after final court approval.
How to File Your Claim and What Documentation You’ll Need
Filing a claim through the settlement administrator is straightforward but requires accurate documentation. You’ll visit underarmoursecuritieslitigation.com and submit a claim form along with evidence of your stock purchases and sales (if applicable) during the class period. Most brokers and financial institutions can provide transaction statements showing purchase dates, quantities, and prices—these documents form the backbone of your claim.
The settlement administrator will review your submission to confirm you fall within the eligible class period and will calculate your share of the settlement fund based on your holdings relative to the total class. Some claims are straightforward and approved quickly, while others may require additional documentation if purchase records are unclear or incomplete. If you’ve lost old statements, contact your broker directly—they maintain records for at least six years and can typically re-issue transaction confirmations at no cost. Filing early gives the administrator time to request clarification if needed before the deadline passes.
Important Limitations—What This Settlement Covers and What It Doesn’t
This settlement covers only shareholders who purchased Under Armour stock and held losses during the class period. If you bought the stock and profited—meaning you sold it for more than you paid—you would typically not be eligible for this particular settlement, as the claim structure rewards those who suffered financial harm. Additionally, this settlement is specifically for investors misled about financial metrics and inventory practices, not for customers unhappy with Under Armour products or anyone who purchased connected fitness subscriptions or equipment.
If you’re looking for compensation related to Under Armour’s connected fitness services—such as MapMyRun, MapMyFitness, or any wearable fitness products—those issues would fall outside this securities settlement. Any separate claims related to fitness services would require a different legal action or settlement entirely. It’s also worth noting that the settlement amount of $434 million will be divided among all eligible shareholders, so your individual recovery depends on how many claims are filed and the total size of holdings within the class. Shareholders with larger losses during the class period typically receive proportionally larger recoveries.
How the Settlement Amount Was Determined
The $434 million settlement represents a negotiated compromise between the plaintiff attorneys, Under Armour’s legal defense, and the court system. This figure is typically a fraction of the total damages claimed in the lawsuit—insurers, company assets, and insurance policies all play a role in determining what can realistically be recovered. In this case, the settlement was approved as a fair and reasonable resolution given the strengths and weaknesses of both sides’ arguments and the costs and risks of continuing litigation.
Understanding settlement economics matters because it affects expectations about individual payouts. If the fund receives 50,000 eligible claims totaling $250 million in stock losses, the average recovery would be approximately 57 cents per dollar of loss. Large claims holders receive larger absolute dollar amounts, but all recoveries are calculated using the same proportional formula. The settlement administrator’s website provides tools to estimate your potential recovery based on your documented purchases and sales during the class period.
What’s Happened to Under Armour Since the Settlement
Under Armour has continued operating as a publicly traded company following the settlement announcement. The company has refocused its strategy on core athletic wear and footwear rather than connected fitness platforms—a shift that began years before the settlement. This doesn’t erase the historical issues that led to the lawsuit, but it shows the company’s direction post-litigation.
For current shareholders, investing in Under Armour going forward is a separate decision from participating in this historical settlement. The settlement should not be viewed as an assessment of Under Armour’s current business health or investment potential. Rather, it resolves specific allegations about misleading statements made to investors during the 2015-2019 period. Whether Under Armour stock is a good investment today depends on separate factors: current financial performance, competitive position in athletic apparel, and future growth prospects.