The U.S. Securities and Exchange Commission has notified Under Armour Inc. of its “preliminary determination” to file charges related to a federal accounting probe previously disclosed by the sportswear maker.
Shares of Baltimore-based Under Armour (NYSE: UAA) were up less than 1% to $10.97 in trading Monday morning after initially falling more than 4% in pre-market trading.
Under Armour disclosed in a federal filing before the morning bell that it received a “Wells Notice” from the SEC on July 22. A Wells Notice is neither a formal charge of wrongdoing nor a final determination that a recipient has violated any law. However, the SEC sends the letter when it is planning to bring forth an enforcement action.
Kevin Plank, the company’s executive chairman and brand chief, and Chief Financial Officer David Bergman also received notices.
