Scottish pension fund wins $434m settlement from Under Armour

The North East Scotland Pension Fund (NESPF), which administers the pensions of Aberdeen, Aberdeenshire and Moray council staff, led a class action lawsuit, alleging Under Armour made false statements about its products, leading to significant losses for investors.

The settlement, pending court approval, comes weeks before a scheduled trial in the US. Under Armour, while denying any wrongdoing, agreed to the settlement to avoid further litigation costs and distractions. The company stated the settlement does not constitute an admission of fault, BBC reports.

Mark Solomon, a lawyer representing NESPF, hailed the settlement as a “win for investors” and a testament to the role pension funds play in holding companies accountable. The NESPF expressed satisfaction with the outcome, considering it an appropriate exercise of their stewardship responsibilities.

“We firmly believe that our sales practices, accounting practices, and disclosures were appropriate, and deny any wrongdoing in this case,” said Mehri Shadman, Under Armour’s chief legal officer and corporate secretary. “Today’s announcement allows us to move past this more than seven-year-old matter so we can avoid the ongoing distraction of litigation and provide certainty to the business at a time when we are executing on important strategic priorities.”