KPC, Alerus Must Face Most Claims In $227M Stock Buy Suit

By Katryna Perera (November 1, 2021, 9:17 PM EDT) -- A California federal judge said Monday that KPC Healthcare Holdings Inc. and Alerus Financial NA must face claims brought against them in a suit alleging the health care company and asset manager botched a $227 million purchase by KPC's employee stock ownership plan.

Former KPC medical coder Danielle Gamino sued KPC and Alerus last year and accused the companies of facilitating a transaction through which KPC's ESOP purchased 100% of KPC's stock at a hugely inflated price. The plan paid $227.1 million for the company's shares, even though they were worth about $27.6 million at the time, Gamino claims.

The suit...

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