Under Armour investors suffered significant losses as a result of what a shareholder’s lawsuit calls false and misleading statements about the company’s prospects.

The sports apparel maker and some of its officers misrepresented the company’s sales and growth in a drive to pursue competitors Nike, Reebok and Adidas, according to allegations in a securities fraud class-action lawsuit filed Friday in U.S. District Court for Maryland. It represents investors who bought Under Armour’s Class A and Class C common stock between April 21, 2016, and Jan. 30.

Defendants, including founder and CEO Kevin A. Plank and former CFO Lawrence P. “Chip” Molloy, “failed to disclose that Under Armour’s revenue and profit margins would not be able to withstand the heavy promotions, high inventory levels and ripple effects of numerous department store closures and bankruptcy of The Sports Authority,” the lawsuit said.

Under Armour said in a statement it is aware of the claims and finds them without merit.

“Under Armour will vigorously defend the case,” the company said in a statement.

Under Armour’s stock plummeted 26 percent on Jan. 31 after the company reported weaker-than-expected sales and profits for the last three months of the year. The company blamed a sluggish holiday season, a shifting retail landscape and merchandise miscalculations for October-to-December sales of $1.3 billion, which, while up 12 percent from a year earlier, fell short of the quarterly gains of 20 percent and more it had reported for nearly seven years.

The company also cut its sales growth target in half for this year.

Plank sought to reassure investors during a Jan. 31 conference call with analysts, saying he remained confident in the underlying strength of the Under Armour brand as the company makes continued investments in the fastest-growing parts of the business, such as footwear, international sales and sales through Under Armour branded stores and websites.

The lawsuit, which names stockholder and Georgia resident Brian Breece as plaintiff, alleges that Plank “saw the writing on the wall” and starting last April “began shifting the company’s capital structure by selling more of his stake to prevent any individual loss, yet maintain control of the company.”

lorraine.mirabella@baltsun.com