Not all is well in the world of Under Armour. The company, its former CEO, Kevin Plank and CFO David Bergman recently received a Wells Notice from the SEC. The notice is related to the company’s use of “pull forward sales” practices (customer sales that are executed earlier than planned , to meet its sales targets). The company in its filing has stated that there was no wrong doings, it stands by its actions and will respond to the SEC notice.
Even though the notice is called a “Wells Notice” ; the notice is actually a warning that a company or individual could face enforcement action!