Nike rising star manager-turned-whistleblower was terminated
when he reported the fraudulent misappropriation of $2 million in shareholder funds, refused to
create false business justifications to justify the funding, and
refused directives to "keep it tight" and ignore the
fraud he uncovered.
PORTLAND, Ore., July 2, 2024
/PRNewswire-PRWeb/ -- A lawsuit was filed today in Multnomah County
Circuit Court to hold Nike accountable for unlawfully firing
Lamar Prince, a talented young
Senior Product Manager selected by Nike's then Vice President of
Digital Innovation Rob Barnette to
analyze the value of existing and potential digital projects within
Nike's Digital Product Creation division. Mr. Prince also worked as
a product manager for a digital project undertaken by Nike's
Footwear Division, referred to as the Footwear Legacy Revolution.
Footwear Legacy Revolution is a suite of digital tools and
applications that allows Nike to create, ideate and develop all
shoes sold at Nike. Cedar Miller and
Patrick Monaghan, two Nike leaders responsible for digital
product technology, had secured $2
million in funding for the Footwear Legacy Revolution by
pitching to Nike's Investment Committee that technology used by the
Footwear Development Team required a massive overhaul to address a
significant security risk. As Mr. Prince carried out his product
management responsibilities, he learned that the security risk was
greatly overstated to secure funding for a project that was neither
necessary nor desired by the Footwear Development Team and would
result in negligible cost savings. Based upon his analysis, it
became apparent to Mr. Prince that Mr. Miller and Mr. Monaghan
misrepresented the magnitude of the security risk in order to
bypass normal channels and secure an influx of investment dollars
into the Digital Product Creation Division with the intention of
diverting those funds to Product Line Plan, a different high
visibility project for which they were responsible that was two
years behind.
"I was disappointed to see my superiors
prioritize their personal interests over those of the company and
its shareholders. By speaking out, I did what I believed was right
and what I expected the company wanted me to do. To lose my job for
doing the right thing feels like the ultimate betrayal."
According to the suit, on September 7,
2023, Mr. Prince recommended that the Footwear Legacy
Revolution technology overhaul be scrapped or reduced in scope, as
it lacked financial justification. On September 14, 2023, Mr. Prince's supervisor
delivered to him a Performance Action Plan with instructions that
he needed to green light the Footwear Legacy Revolution project or
he would face consequences. Shortly thereafter, Mr. Monaghan
emailed Mr. Prince acknowledging that "[t]he security item was
merely a funding driver this fiscal year" and instructing him not
to discuss the security risk further –to "Keep it Tight," in Nike
parlance. Mr. Monaghan and Mr. Miller reiterated the importance of
moving forward with the Footwear Legacy Revolution project.
Believing that Footwear business leaders needed to know the truth
regarding the project, Mr. Prince shared in a meeting on
September 28, 2023, that there was no
evidence of a security risk that would justify the Footwear Legacy
Revolution project and that cost savings to the Footwear Division
would be minimal. In this same meeting, Mr. Miller admitted that
the purported security risk was a "Trojan horse" to secure funding,
but he contended that the project was worthwhile nevertheless.
Perceiving that he was being asked to remain quiet about the
fact that the security risk was a ruse to obtain funding under
false pretenses, Mr. Prince reported to Mr. Barnette that he was
being pressured to participate in a lie to support a project that
he believed was contrary to the best interests of Nike and its
shareholders. Roughly one week later, Mr. Prince's supervisor
issued him a Final Corrective Action, with instructions that he
needed to "align" with leadership and support proceeding with the
Footwear Legacy Revolution project.
In meetings with Mr. Barnette on October
16, 2023, and with Mr. Miller and other leaders on
October 23, Mr. Prince stood firm in
his position that the Footwear Legacy Revolution project was
unjustified and contrary to the interests of Nike and its
investors. Because Mr. Prince refused to back down, Nike terminated
Mr. Prince's employment on October 27,
2023.
The lawsuit asserts that Nike terminated Mr. Prince in
retaliation for his legally protected reports that Mr. Miller and
Mr. Monaghan were diverting investor funds under false pretenses to
shore up another struggling project for which they were
responsible. "This is a classic case of shoot the messenger,"
explained attorney Dana Sullivan.
"Nike purports to prioritize its shareholders and customers and
pays lip service to maintaining high ethical standards. The company
urges employees to speak up when they see something that violates
those standards. However, when Lamar believed Nike leaders were
duping shareholders and spoke out about it, it cost him his
job."
According to Mr. Prince, "I bought into Nike's vision of digital
transformation and corporate success through efficiency and high
standards. I was disappointed to see my superiors prioritize their
personal interests over those of the company and its shareholders.
By speaking out, I did what I believed was right and what I
expected the company wanted me to do. To lose my job for doing the
right thing feels like the ultimate betrayal."
Of note, this is not the first recent legal action questioning
whether Nike has their shareholders' best interests at heart. Just
last week, a class action shareholder lawsuit asserted that Nike
executives participated in a scheme to defraud its shareholders by
pushing strategies that resulted in economic losses.
Lawsuit specific info contact: lead attorney Dana Sullivan, Buchanan Angeli Altschul &
Sullivan LLP,
office: (503) 974-5023, email: dana@baaslaw.com
Media Contact
Dana L. Sullivan, Buchanan Angeli
Altschul & Sullivan LLP, 1 503-493-1517,
dana@baaslaw.com
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content:https://www.prweb.com/releases/whistleblower-lawsuit-seeks-justice-for-nike-rising-star-who-refused-to-remain-silent-about-the-misdirection-of-2-million-in-shareholder-funds-under-false-pretenses-302187627.html
SOURCE Buchanan Angeli Altschul & Sullivan LLP