BEATRICE, Neb. (AP) — The lawsuit filed by 12 former employees against Dempster Industries and CEO Wallace Davis has been settled for $175,000.
Gage County District Court records show the tentative deal was finalized last week.
The 12 filed the lawsuit in September 2011 for lost wages and other earnings. The lawsuit alleged that Davis and Dempster also didn't pay parts suppliers, defaulted on loans from banks and economic development firms, and didn't deliver products to customers that paid up front. The Beatrice manufacturing plant closed down last year.
Davis bought Dempster Industries for $3 million in 2008 and planned to continue making water pumps and fertilizer equipment and add construction of wind turbines. The lawsuit said the company then ran into financial difficulty.
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