BEATRICE, Neb. (AP) — Twelve former employees have reached a tentative agreement in their lawsuit against Dempster Industries and CEO Wallace Davis.
A trial had been scheduled to begin Monday in Beatrice.
The 12 filed the lawsuit in September 2011, seeking lost wages and other earnings totaling more than $160,000.
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 had paid upfront.
The Beatrice manufacturing plant closed last year.
Davis bought Dempster Industries for $3 million in 2008, with plans to continue making water pumps and fertilizer equipment and to add construction of wind turbines. The lawsuit said the company then ran into financial difficulty.