There is no current “Under Armour Warranty Lawsuit Settlement” involving consumer product defects. The major Under Armour class action settlement is a securities litigation case, not a warranty claim. In June 2024, Under Armour agreed to a $434 million settlement over accusations of manipulated financial reporting, specifically a “pull-forward” revenue recognition scheme between September 2015 and November 2019.
The settlement was finally approved by the U.S. District Court for the District of Maryland on November 7, 2024. If you purchased Under Armour securities (stock, bonds, or invested in retirement accounts holding the company’s stock) during this period, you may be eligible to file a claim. This article explains what the Under Armour settlement actually covers, who qualifies, and how to submit a claim before deadlines pass.
Table of Contents
- What Is the Under Armour Securities Settlement Actually About?
- Who Qualifies as an Eligible Claimant?
- Settlement Amount and Payout Expectations
- How to File a Claim for the Under Armour Settlement
- Important Limitations and What This Settlement Does NOT Cover
- Timeline and Important Deadlines
- What Happens After You File Your Claim?
What Is the Under Armour Securities Settlement Actually About?
The Under Armour settlement stems from allegations that the company used improper accounting methods to recognize revenue earlier than it should have—a practice called “pull-forward” revenue recognition. The lawsuit claimed Under Armour executives manipulated quarterly results to hide declining product demand and mask the company’s true financial health. This allegedly misled investors who relied on financial statements to make investment decisions. Under Armour has denied all allegations and admitted no wrongdoing; the company chose to settle to avoid the costs and risks of prolonged litigation. This is fundamentally different from a product warranty or defect claim. You cannot use this settlement to recover money for a broken Under Armour shoe, faulty equipment, or products that failed to meet your expectations.
The settlement is exclusively for investors who lost money in the stock market because they bought or held Under Armour securities based on allegedly fraudulent financial statements. If you purchased Under Armour apparel or equipment for personal use, this settlement does not apply to you, regardless of product quality issues. The $434 million settlement amount is significant—it ranks as the second-largest securities class action recovery in the Fourth Circuit Court of Appeals and among the top 50 largest settlements in U.S. history. However, the actual payment per claimant depends on how many valid claims are filed and how much each investor actually lost. Some claimants may receive substantial payments; others whose losses were minimal may receive only a small amount or nothing after administrative fees.
Who Qualifies as an Eligible Claimant?
To qualify for the Under Armour settlement, you must have purchased or held Under Armour securities (common stock, stock options, or bonds) at any point between September 16, 2015, and November 1, 2019. The “claims period” is strict—purchases outside this window do not qualify. However, you do not need to still own the stock or bonds; if you sold them during or after the period, you can still file a claim based on the original purchase date and your documented loss. You become eligible as long as your purchase was made during the claims period. If you bought Under Armour stock in your personal brokerage account, through a retirement account (401k, IRA, etc.), or through an employer stock plan, you qualify.
If a deceased family member held Under Armour securities during this period, their estate or surviving family members may file on their behalf. However, if you did not purchase or hold the securities directly—for example, if you only bought Under Armour consumer products—you have no claim. A critical limitation: you do not need to prove you relied on any specific statement made by Under Armour. The settlement uses a “fraud-on-the-market” theory, which assumes that if you bought stock in a publicly traded company during the period when false statements were being made, you were harmed by the fraud regardless of whether you read specific press releases or financial reports. This dramatically lowers the barrier to filing compared to individual fraud lawsuits where you would have to prove you personally relied on a false statement.
Settlement Amount and Payout Expectations
The total settlement fund is $434 million. However, this amount is divided among all eligible claimants, the claims administrator’s administrative costs, attorneys’ fees (typically 25% of the settlement), and any court-approved incentive payments to class representatives. This means the actual pool available to distribute to individual investors is significantly less than the headline number. The exact amount you receive depends on several factors: (1) the total number of valid claims filed, (2) your individual loss calculation, and (3) the ratio of your loss to total losses across all claimants. The claims administrator calculates each person’s “claim value” based on their purchase and sale dates and prices.
For example, if you bought 100 shares at $30 on January 1, 2017, and sold them at $20 on June 1, 2018, your loss would be calculated as 100 shares × ($30 purchase price − recovery value) = your proportional claim. If you are among thousands of claimants and total losses exceed the settlement fund, you receive a pro-rata share. Many claimants receive anywhere from a few hundred to several thousand dollars, depending on the scale of their investment and loss. However, early estimates suggest per-share recoveries of roughly 10-20% of documented losses, though this varies. The final distribution date typically occurs 6-12 months after claims are processed, so do not expect immediate payment. The claims administrator, not under Armour, handles all payments.
How to File a Claim for the Under Armour Settlement
To file a claim, you must submit documentation proving your purchases and sales of Under Armour securities during the claims period (September 16, 2015 – November 1, 2019). The claims administrator’s website (https://www.underarmoursecuritieslitigation.com/) provides a claim form and detailed instructions. You will need to provide: Proof of purchase (brokerage statements, confirmations, or account records showing dates and prices) Proof of sale (if you sold the securities) or current holdings (if you still own them) Personal identification and contact information Calculation of your loss (or let the administrator calculate it from your documentation) Many investors find their brokerage statements online through their broker’s website or by contacting the broker directly. If your records are lost, some brokers can provide historical transaction data upon request. If you purchased through an employer retirement plan, contact your plan administrator or HR department.
If you inherited securities or hold them in an estate, include a copy of the relevant legal documentation (death certificate, will, estate documents). The deadline to file a claim is strictly enforced. As of the November 2024 court approval, the filing deadline is typically 6-12 months after the claims period begins, though this can be extended in some cases. Do not wait until the last moment—submit your claim well before the deadline to ensure processing and to allow time for the administrator to request any missing documentation. Late claims are rejected without exception.
Important Limitations and What This Settlement Does NOT Cover
This settlement explicitly does NOT compensate you for Under Armour product defects, warranty issues, or manufacturing problems. If you have a faulty Under Armour shoe that fell apart, unsatisfactory apparel, or equipment that failed, you have no claim under this settlement. You would need to pursue a separate warranty claim, return the product to the retailer, or file a small claims court action if desired—but those are different processes entirely. Additionally, the settlement does NOT apply to investors who purchased securities after November 1, 2019. If you bought Under Armour stock in 2020, 2021, or later, you are not eligible for this settlement, even if you subsequently suffered losses.
The claims period is fixed and non-negotiable. Some investors are disappointed to learn this and attempt to file claims for later purchases, but these claims are rejected automatically by the administrator. The settlement also does NOT apply if you did not actually suffer a financial loss. If you bought Under Armour stock at $40 and sold it at $45, you made a profit and have no eligible claim, because the settlement compensates only those whose investments declined in value due to the alleged fraud. Similarly, if you still hold the stock and it has recovered to your original purchase price or higher, your claim value may be minimal or zero depending on how the administrator calculates current holdings.
Timeline and Important Deadlines
The case was originally filed in 2017, but the settlement was not announced until June 2024. The court granted final approval on November 7, 2024. The claims deadline is typically 180 days after initial notice goes out to eligible investors, meaning the deadline to file is likely in mid-2025 (check the official website for the exact date, as it may be extended). The settlement then moves into a verification and processing phase, which takes several additional months.
Distributions to claimants are typically issued 6-12 months after the claims deadline. If you receive notice in the mail from the claims administrator, read it carefully and note the deadline. Many claimants miss deadlines because they misplace the notice, forget to respond, or assume they have more time. The administrator typically sends one notice; follow-up reminders are not guaranteed. Set a calendar reminder for 30 days before the deadline to submit your claim.
What Happens After You File Your Claim?
After you submit your claim, the claims administrator reviews it for completeness and accuracy. If documentation is missing or unclear, they will contact you requesting additional information. You then have a specified window (usually 30-60 days) to respond. If you fail to respond, your claim may be denied.
If the administrator processes your claim successfully, you receive a confirmation and are placed in the distribution queue. The final distribution phase involves court oversight and audit procedures to prevent fraud. Once all claims are validated and the settlement fund is calculated after deducting attorney fees and administration costs, payments are issued via check or electronic transfer to the address or account you provided. If you move or your contact information changes, notify the claims administrator immediately so you don’t miss a payment. Payments issued to outdated addresses can be traced through the postal service, but this delays your money and creates complications.