Council pension fund in legal fight with Under Armour

Under Armour has previously said the legal challenge was "without merit"

Aberdeen City Council has sought damages from a US sportswear brand after a local government pension fund lost millions of pounds.

The North East Scotland Pension Fund (NESPF) administers a scheme for 71,000 workers including Aberdeen, Aberdeenshire and Moray council staff.

The fund invested millions of pounds in Under Armour stock in recent years.

Aberdeen City Council lawyers have accused the firm of making alleged "false" statements about its products.

Under Armour, whose accounts have been the subject of investigations by US authorities, has been asked for a comment.

Aberdeen City Council is part of a class action in the US seeking damages, costs and expenses from the US company.

Councillor Tauqeer Malik, convener of the council's pensions committee, said more than £6m had been lost from the fund. He accused the US company of alleged "unethical practices".

But he said he wished to reassure people their pensions would be unaffected.

Mr Malik said: "The North East Pension fund has a duty and obligation to protect its pensioners, that's why the fund has taken an action in the USA to protect its pensioners from alleged unethical practices.

"Those who rely on the pension fund should be reassured that currently the pension fund is valued a 103% which means its extremely healthy - we're doing really well."

Aberdeen City Council said: "As this is an ongoing legal case, Aberdeen City Council as the administering authority of NESPF will make no further comment."

BBC Scotland has asked Under Armour for comment.

The sportswear brand previously said the legal challenge was "without merit" and it would defend the lawsuit "vigorously".