From The Denver Post (Steve Raabe):
Silver Peaks Holdings LLC last week filed a statement saying its 2012 allegations and lawsuit against Lembke “are not supported by the actual facts.”
Weld County District Court Judge Julie Christine Hoskins earlier this week granted a motion by Lembke’s company to dismiss the lawsuit against him.
The suit claimed Lembke and two of his associates used land for the Silver Peaks real estate development as collateral to finance water-delivery systems for other real estate projects along the Front Range through Lembke’s United Water and Sanitation District.
Silver Peaks contributed 550 acres of land near Lochbuie to a partnership with Lembke for a proposed 2,300-home development. Silver Peaks subsequently claimed that Lembke and his partners used the land to secure financing for a $14 million water system to fulfill contracts with other water districts instead of providing water for the Lochbuie development.
However, Silver Peaks manager L. Kelley Carson said in her statement that “further investigation has determined that none of the defendants … engaged in any wrongdoing.”[…]
A spokeswoman for Lembke said a settlement also was filed in the case. Settlement terms are confidential, although Carson’s agreement to submit a retraction was part of the agreement, the spokeswoman said.
K.C. Groves, an attorney for Silver Peaks, acknowledged Thursday that his client and the Lembke partnerships have reached a “global settlement of their disputes” that involves dismissal of the lawsuit and two related cases.
Here’s the Coyote Gulch post when the lawsuit was filed.