Relatives feuding for control of one of the largest family-owned businesses in Minneapolis have reached a settlement that resolves several lawsuits.
The lawsuits involving Twin City Fan Cos. were put on hold this month after family members agreed to a term sheet resolving all claims, the Star Tribune reported.
The feud began in 2016 after an internal investigation uncovered former CEO Charles Barry had questionable spending, according to court documents.
A report from an outside group of attorneys found that Barry gave himself millions of dollars in excessive compensation and took other actions that violated his responsibilities as the company’s chairman and CEO.
Family members allege Barry misused corporate resources, including spending at least $11 million to support his current wife, Kathleen Bryan-Barry. The couple got married in December 2016, less than two weeks after Barry divorced his first wife.
Barry denies those claims and accuses his ex-wife and children of using his affair with Bryan-Barry to push him out of the company. Family members fired Barry from his position this spring.
Many details of the settlement’s terms are still being discussed by lawyers. Under the terms of the deal, Barry has agreed to sell his nearly 27 percent share of the company for $15 million to $20 million. Barry said family members have agreed not to pursue criminal charges against him.
The pending settlement also gives Barry’s son, Michael Barry, control of a manufacturing company, which employs 1,500 people in five states.
Twin City has annual sales of $275 million and is one of the largest industrial fan makers in the U.S. The company’s products include small exhaust fans and large blowers that move air in factories.