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.

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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SOURCE Buchanan Angeli Altschul & Sullivan LLP