The former leader of a Boise-founded medical supplies business is no longer named in a lawsuit by the federal government over the company’s employee stock ownership plan.
The U.S. Department of Labor sued Norco, former CEO James Kissler, the company’s employee stock ownership plan and Alerus Financial NA in November 2023, saying they overvalued stocks sold to an employee retirement plan several years ago.
On Monday, U.S. District Court Judge David Nye ordered a motion from Kissler to dismissed the claims against Kissler, citing insufficient evidence that he breached his fiduciary duties or that he should be held liable as a cofiduciary or a knowing participant.
But Nye found that there was enough evidence to suggest Alerus might have breached its fiduciary duties, so he denied a motion from the financial services firm to dismiss the charges against it and allowing that part of the case to proceed.
The lawsuit alleges Alerus authorized a deal to pay Kissler and a related family foundation more than $140 million for 35% of Norco’s stock without performing a “good faith investigation” into its fair market value.