MINNEAPOLIS (KMHL) – Things continue to deteriorate between Bremer Financial Corporation and the foundation that controls it.
Bremer has filed a lawsuit against the Otto Bremer Trust, who it says is attempting to facilitate the sale of the bank against the wishes of its board of directors.
In a press release, Bremer’s board of directors, said the sale of Bremer Financial is not in the best interest of the company’s employees, shareholders or the community it serves.
“In filing this lawsuit, the Board is carrying out its fiduciary obligation to ensure that any transfer of Bremer Financial shares is valid and consistent with OBT’s and Bremer Financial’s organizational documents, which reflect Otto Bremer’s vision to harness the power of banking and drive economic growth and to support our communities,” said Ronald James, Chairman of the Board of Bremer Financial.
Bremer is the 4th largest bank in Minnesota and the 11th largest agriculture lender in the nation.
The lawsuit is seeking a judgement to declare the transfers invalid and to stop the trustees from transferring shares of Bremer Financial or having discussions with potential acquirors of the company without authorization from the board.
It is also asking the judgement declare that trustees breached their fiduciary duties as directors of Bremer Financial and asserts the trustees acted in bad faith and constituted shareholder oppression.
The bank serves communities in Minnesota, Wisconsin and North Dakota.