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Wednesday, February 25, 2026

Whistleblower lawsuit against large Portland homeless services provider prompts rally - KATU

PORTLAND, Ore. (KATU) — Employees of Sunstone Way, one of Multnomah County’s largest homeless service providers, are set to rally Tuesday afternoon amid allegations of financial mismanagement by the nonprofit’s top executives.

A lawsuit filed Feb. 12 in Multnomah County Circuit Court alleges that Kate Fulton, Sunstone Way’s former finance director, was unfairly terminated for attempting to expose what she describes as gross mismanagement and waste of public dollars by the nonprofit’s top executives.

READ ALSO | Lawsuit claims large Portland homeless service provider grossly mismanaged public funds

According to a press release sent by AFSCME Local 1790, which represents Sunstone workers, Tuesday afternoon’s rally will be “in support of severance and health insurance continuation for workers facing layoffs due to the closure of the Market Street Shelter, as well as accountability for the organization’s leadership.”

KATU will provide a livestream of the rally when it begins at 1 p.m.

The press release states that workers are calling on the nonprofit’s board to replace the organization’s executives.

This story will be updated.



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