Tagged: Revenue recognition

Episode 199 — Jonathan Marks, Baker Tilly, and Michael Volkov Review the SEC’s Under Armour Case, Accounting Fraud, and Revenue Recognition Issues

Under Armour settled its long-pending SEC investigation by agreeing to pay $9 million surrounding misleading statements and practices relating to its revenue growth and uncertainties as to future growth. As part of the settlement, the SEC declined to bring charges against its CEO, Kevin Plank, and its CFO, David Bergman. The Justice Department inquiry appears to have lost steam since the middle of last year, and...

Under Armour Under DOJ and SEC Investigation For Revenue Recognition Scheme

The Justice Department and the SEC have launched criminal and civil accounting fraud investigations against Under Armour.  The sportswear maker has been suffering a rapid revenue decline over the last few years.  The allegations focus on Under Armour’s accounting practices and shifting of sales from quarter to quarter to present a healthier picture of its finances than was actually occurring. Under Armour Culture Problems Over...