Labor Department Suit Over $39 Million Stock Sale Heads to Trial

A Department of Labor lawsuit challenging a $39 million stock sale between the former chairman of Minnesota-based Kurt Manufacturing and its employee stock ownership plan is heading to trial after a federal judge declined to rule in favor of either party.

The case, which accuses Kurt board members and stock plan trustee Reliance Trust Company of causing the plan to overpay for Kurt’s stock, turns on disputed factual questions that can’t be resolved without a trial, Judge Susan Richard Nelson of the U.S. District Court for the District of Minnesota said in a lengthy opinion issued Tuesday. She declined to ...