UAA - UCLA Files $200 Million Suit Against Under Armour for Breach of Contract
The Los Angles arm of the University of California, better known as UCLA, is suing athletics apparel brand Under Armour (NYSE: UA) (NYSE: UAA). The school seeks $200 million in compensation, claiming Under Armour breached a sponsorship deal made in 2016 that would have paid the school $280 million over the course of 15 years.
The development is the latest chapter in a saga that began in June, when Under Armour informed UCLA it had "made the difficult decision to discontinue our partnership with UCLA," as the company has "been paying for marketing benefits that we have not received for an extended time period." That benefit is the use of Under Armour gear by the university's athletes, which promotes the brand to consumers. The COVID-19 pandemic has largely shut down college sports.
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