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1:22-cv-02481
Maryland
Insurance
Richard D. Bennett
Under Armour told a Maryland federal court that the insurers it reimbursed after the Fourth Circuit capped its coverage for a securities class action, government investigations and derivative matters at $100 million are not entitled to millions of dollars in prejudgment interest.
The Fourth Circuit didn't seem convinced Wednesday that it should affirm a lower court's finding that government investigations into Under Armour are unrelated to a securities class action against the sportswear company and thus trigger an additional $100 million in directors and officers coverage from Under Armour's excess insurers.
Under Armour's excess insurers must provide additional coverage to the company in connection with a consolidated securities class action, derivative matters and government investigations, a Maryland federal court announced.
Endurance American Insurance Co. agreed Thursday to end its $10 million coverage reimbursement case against Under Armour Inc. related to government investigations of the sportswear maker for potential federal securities law violations.
Under Armour said its insurer can't claw back $10 million in coverage for investigations into the company by the U.S. Securities and Exchange Commission and the Department of Justice, it told a Maryland federal court, saying the investigations aren't related to an earlier claim.
An insurer sued Under Armour in Maryland federal court, seeking to recover $10 million it paid to cover the sportswear maker for costs incurred in responding to government investigations and shareholder complaints related to allegations that the company misled investors about its earning potential.