Karmanos lawsuit settled in mediation

A lawsuit filed against Carolina Hurricanes owner Peter Karmanos by his sons over the handling of a family trust has been settled in mediation.

Documents filed with the court clerk in Oakland County, Mich., indicate the parties agreed to a settlement on Sept. 9, although they will continue to negotiate the details, which are expected to remain confidential, over the next several weeks.

While there is still a hearing in the case scheduled for next Wednesday, it only remains on the docket as a procedural matter.

Karmanos’ three adult sons – one of whom, Jason Karmanos, spent several years in the Hurricanes’ front office and now works for the Pittsburgh Penguins – alleged Karmanos borrowed more than $100 million from a trust set up on their behalf to fund the operations of the Hurricanes, then failed to make about $4 million in required interest payments on the debt.

In April, the brothers demanded repayment of the entire loan plus interest, more than $107 million, then filed the lawsuit when Karmanos did not pay. The case was set to go to trial in August 2017.

This story was originally published November 15, 2016 at 10:45 AM with the headline "Karmanos lawsuit settled in mediation."