(RTTNews) - Responding to the Wall Street Journal article on federal accounting probes, Under Armour (UA) said Sunday that it is cooperating with the U.S. Securities and Exchange Commission and the U.S. Department of Justice investigations into its accounting practices and related activities dating back to 2017.
Federal authorities are investigating Under Armour's accounting practices in a probe examining whether the sportswear maker shifted sales from quarter to quarter to appear healthier, the Journal reported citing according to people familiar with the matter.
"Under Armour is cooperating with the U.S. Securities and Exchange Commission and the U.S. Department of Justice investigations", a company spokesperson twitted.
"The company began responding in July 2017 to requests for documents and information relating primarily to its accounting practices and related disclosures, and the company firmly believes that its accounting practices and disclosures were appropriate," he also twitted. But the company didn't provide any further details.
Last month, Under Armour announced that President & Chief Operating Officer Patrik Frisk will become the company's Chief Executive Officer, effective January 1, 2020. Frisk, 56, would serve as CEO & President, reporting to Kevin Plank and will join Under Armour's Board of Directors.
Plank, having served as Chairman and CEO since he founded the company in 1996, would become Executive Chairman & Brand Chief continuing to lead Under Armour's Board of Directors.