Investigation into Under Armour's Board for Cybersecurity Breaches
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 04 2026
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Should l Buy UA?
Source: PRnewswire
- Board Investigation: Berger Montague is investigating Under Armour's Board for potential breaches of fiduciary duties related to reported cybersecurity incidents, which could undermine shareholder confidence and the company's reputation.
- Shareholder Rights Protection: The investigation aims to safeguard Under Armour shareholders' interests, with the firm encouraging shareholders to contact them for more information, indicating that legal risks may impact the company's future financial performance.
- Law Firm Background: Berger Montague is a leading U.S. law firm specializing in complex civil litigation and class actions, having recovered over $50 billion for clients over 55 years, showcasing its strength and experience in handling intricate cases.
- Potential Impact: Should the investigation confirm any misconduct by the Board, Under Armour may face legal liabilities and financial losses, negatively affecting its stock price and market performance.
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Analyst Views on UA
About UA
Under Armour, Inc. is an inventor, marketer and distributor of branded athletic performance apparel, footwear and accessories for men, women and youth. Its primary business operates in four geographic segments: North America, comprising the United States and Canada, Europe, the Middle East and Africa (EMEA), Asia-Pacific, and Latin America. Its apparel comes in three primary fit types: compression (tight fit), fitted (athletic fit) and loose (relaxed fit). Its footwear includes products for running, training, basketball, cleated sports, recovery and outdoor applications, as well as casual use. Its accessories primarily include athletic performance gloves, bags, headwear and socks. It sells its apparel, footwear and accessories in North America through wholesale and direct-to-consumer channels. It sells its apparel, footwear and accessories in EMEA primarily through wholesale customers and independent distributors, along with e-commerce Websites and brand and factory house stores.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Shareholder Rights Protection: As a global sportswear and performance gear company, Under Armour shareholders can contact law firm Berger Montague to stay informed about the investigation and ensure their rights are protected amid potential legal issues.
- Law Firm Background: Berger Montague is one of the leading law firms in the U.S., focusing on complex civil litigation and class actions, having recovered over $50 billion for clients over the past 55 years, showcasing its strength in the legal field.
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- New Appointment: Reza Taleghani has been appointed as the Principal Financial Officer at Under Armour.
- Role Responsibilities: As Principal Financial Officer, Taleghani will oversee financial operations and strategy for the company.
See More
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- Earnings Beat Expectations: Under Armour (UA) reported better-than-expected profits in Q3, yet growing earnings in FY27 appears increasingly challenging due to fierce competition in the North American market.
- Rating Downgrade Impact: Citi Research downgraded Under Armour's stock from Neutral to Sell, resulting in a share price drop of up to 9.5% on Tuesday, reflecting market concerns about its future performance.
- Sales Growth Slowdown: Sales growth in the EMEA region for Under Armour decreased from high single digits in the first half of 2026 to just 2% in Q3, indicating that macroeconomic pressures are impacting its performance.
- Brand Competition Pressure: Competing against strong brands like Nike (NKE) and Adidas (ADDYY), Under Armour must demonstrate that its brand resonates with consumers to secure better market share with key retailers like DICK's Sporting Goods and JD Sports.
See More
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See More
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- Board Investigation: Under Armour's Board is under investigation for potential breaches of fiduciary duties related to reported cybersecurity incidents, which could negatively impact the company's reputation and shareholder confidence.
- Shareholder Rights Protection: As a global sportswear and performance gear company, Under Armour shareholders can contact law firm Berger Montague to stay informed about the investigation and ensure their rights are protected amid potential legal issues.
- Law Firm Background: Berger Montague is one of the leading law firms in the U.S., focusing on complex civil litigation and class actions, having recovered over $50 billion for clients over the past 55 years, showcasing its strength in the legal field.
- Potential Consequences: The investigation may lead to legal liabilities and financial losses for Under Armour, affecting its market performance and shareholder value, prompting investors to closely monitor developments to assess risks.
See More
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Insider Trading Insights: Investors should be cautious when analyzing insider trades, as insider sales can appear alarming but may not indicate negative sentiment, especially if they are made under predetermined plans. Conversely, insider buying is generally viewed as a positive indicator for future stock performance.
GameStop and USA Rare Earth Activity: Recent insider buying activity has been noted in companies like GameStop and USA Rare Earth, with significant purchases made by insiders, including Michael Burry, suggesting confidence in the companies' future despite existing risks.
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See More
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- Strategic Execution Progress: Under Armour's CEO Kevin Plank emphasized that the company is entering the next phase of its turnaround, having completed a 25% SKU reduction which significantly improved inventory levels, indicating substantial progress in execution and structure that enhances market competitiveness.
- Financial Performance Exceeds Expectations: Q3 revenue declined 5% to $1.3 billion, with North America down 10% but EMEA up 6%; the adjusted operating income outlook has been raised to $110 million, reflecting the company's efforts in cost control and execution consistency.
- Leadership Changes: Under Armour announced several strategic leadership changes, including Kara Trent as Chief Merchandising Officer, Adam Peake as President of the Americas, and Eric Liedtke as Chief Marketing Officer, aimed at driving business growth through product line simplification and enhancing emotional connections with the brand.
- Optimistic Future Outlook: The company updated its full-year revenue outlook to a decline of approximately 4%, improving from the previous 4%-5% decline expectation, showcasing management's confidence in future stability, particularly with ongoing growth in the EMEA region.
See More
