A second Under Armour shareholder has filed a lawsuit against Kevin Plank and members of the company's board of directors, alleging that the sports apparel boss wrongly enriched himself in pursuing the Port Covington project.
The lawsuit was filed in Baltimore federal court on Monday by Scott King, a shareholder from Virginia.
The case lays out similar allegations to a suit filed over the South Baltimore development project last month. But the new case also names Sagamore Development Co., Plank’s private real estate company, which is the joint owner of the Port Covington site, as a defendant, saying the company joined in Plank’s alleged scheme.
Plank and his partners are seeking to build a sprawling mixed-use development in Port Covington, with new Under Armour offices as an anchor. The project is backed by a $660 million public bond package to fund infrastructure improvements.
But the lawsuits allege that it was wrong for Plank to pursue the development himself while using Under Armour to improve its prospects of success.
“The opportunity to acquire Port Covington real estate and the related appreciation in the land due to the Company’s planned move were opportunities belonging to Under Armour that Plank and Sagamore improperly expropriated for themselves,” the new complaint says.
In a statement, Under Armour said, “we do not believe there is any merit to the similar claims raised in these lawsuits.”
A representative of Sagamore did not immediately respond to a request for comment.