South Dakota Economic Development Lawsuit Ends as A1 Development, Bad River and Kyle Peters Agree to Dismissal
- Steve Jurrens
- 4 days ago
- 2 min read
Northeast Radio SD News – Watertown, SD - A lawsuit between prominent South Dakota economic development firm A1 Development Solutions and a former associate has concluded after all parties agreed to a mutual dismissal.
On August 28, 2026, Third Judicial Circuit Court Judge Carmen A. Means officially signed an Order of Dismissal with Prejudice, closing the case permanently without awarding costs to any party. This ruling followed a joint stipulation filed by the plaintiff and defendants Kyle Peters, Bad River Development, LLC, Josh Teigen, and 1776 Group, LLC on August 27, 2026.
The lawsuit, initially filed in February 2026 in Codington County, centered on A1 Development’s allegations that Peters orchestrated a multi-year scheme to siphon clients and negotiate unauthorized side-deals. However, court filings reveal the defendants aggressively pushed back against the narrative before reaching the final resolution.
Counterclaims and Withheld Commissions
In their formal answer to the complaint, Bad River Development flatly denied A1 Development’s allegations of client poaching and lobbed counterclaims for breach of contract and conversion.
· Bad River alleged that A1 Development held a secret meeting in November 2025 to unilaterally cut off Bad River’s access and effectively expel them from the company.
· The defense claimed A1 improperly withheld more than $52,570.00 in earned commissions for client relationships Bad River originated.
· Bad River asserted that A1 wrongfully reallocated these commission funds to other firm members who had not actually earned them.
Pushback on Personal Liability
Prior to the case’s dismissal, Kyle Peters filed a motion to dismiss the individual claims against him, specifically targeting A1’s allegations of breached fiduciary duty and fraudulent concealment.
· Peters’ legal team argued he never served as a fiduciary for A1 Development.
· The defense noted that Peters was merely an employee and later an independent contractor, while Bad River Development—of which Peters is the sole member—held only nonvoting Class B membership units in A1.
· Peters also argued that A1’s attempt to “pierce the corporate veil” and hold him personally liable lacked any factual basis showing commingled assets or a failure to maintain corporate formalities.
