Under Armour announced details Friday about a dividend valued at $59 million to be paid to owners of the company's non-voting common stock as part of a shareholder lawsuit settlement.
The sports apparel maker's board of directors has approved payment of the dividend in portions of additional shares of the non-voting, Class C stock, with cash in lieu of any fractional shares.
The sports brand reached a settlement in October with shareholders who sued over plans to create the new class of stock without voting rights. The structure was designed to preserve founder and CEO Kevin Plank's personal control over Under Armour even as he sells off some shares.
The shares will be distributed on or about June 29 to stockholders of record of the Class C stock on June 15, Under Armour said in a filing with the U.S. Securities and Exchange Commission. The initial distribution ratio will be 0.007098 of a share of Class C stock for each share of Class C stock held.
The lawsuit in Baltimore Circuit Court had alleged the company's board breached its fiduciary duty to shareholders, and it sought to block the stock split, which gave owners of each existing share of common stock one new share of the new class.
Under Armour had previously announced it would issue the dividend valued at $59 million in some form to holders of the Class C stock to make up for any potential discount in the trading price of Class C stock compared with Class A common stock in the initial distribution.