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- Sportswear firm Under Armour (NYSE:UAA) said Friday it has agreed to settle a securities litigation that was originally filed in 2017 and will pay $434 million to resolve matters.
- As part of the settlement, the company said it has also agreed to two governance changes for a specified time period.
- The company intends to pay the settlement amount through cash on hand and/or by drawing on its $1.1 billion revolving credit facility.
- The company had previously recorded an accrual of $100 million in litigation reserves related to this matter and now expects the total accrual to reach $434 million during the first quarter of fiscal year 2025.
- Once the claims are settled, the company expects to end fiscal 2025 with about $500 million in cash and cash equivalents and no borrowings outstanding under its $1.1 billion revolving credit facility.
- Press Release.