The Labor Department sued Alerus Financial NA and Idaho equipment distributor Norco Inc. over a transaction that allegedly forced Norco employees to significantly overpay for stock in the company.
The lawsuit, filed Thursday in the US District Court for the District of Idaho, takes aim at a 2015 transaction in which Norco’s newly-established employee stock ownership plan paid more than $140 million for a 35% stake in the company. According to the department, the entire company was valued at about $138 million three years earlier.
The department says Alerus, which served as the plan trustee charged with representing Norco ...
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