First State Bank of Floodwood v. Jubie

LOKEN, Circuit Judge.

John Schilling, William Gravelle, Joseph Bullyan, and Eugene Stowell acquired the First State Bank of Floodwood, Minnesota (the “Bank”), from Jerry and Irene Jubie by purchasing their stock in a holding company, Floodwood Agency, Inc. (the “Agency”). Extensive litigation has ensued. In this ease, the individual purchasers, the Bank, and the Agency (collectively, the “Purchasers”) sued the Jubies, asserting contract claims and common law and statutory fraud claims arising out of allegedly undisclosed bad loans, insider loans, and other financial problems that have plagued…