Shri Thanedar, who finished last in the 2018 Democratic gubernatorial primary, agreed on Friday to settle a lawsuit that alleged he committed fraud in the sale of his former business.
The settlement came before a trial would have started in Detroit on Tuesday. Thanedar recently moved to the city amid rumors that he may launch another bid for political office, although it’s unclear whether he’ll seek office at the city or state level.
Thanedar, founder of Avomeen Analytical Services, sold his majority share of the company in 2016, before he launched his career in politics. He was then sued by Avomeen Holdings, which alleged he inflated the company’s value in the sale, making about $20 million. In the suit, Avomeen claimed between $7 million and $8 million in damages.
In 2016, Thanedar spent millions of his own cash on his failed gubernatorial bid, where he came in third place behind current Gov. Gretchen Whitmer and the city of Detroit’s former health director, Abdul El-Sayed.
Thanedar was the top vote-getter in the primary in Detroit, however, narrowly edging Whitmer to win more than 35,000 votes.
In July, Thanedar told the Detroit News amid talk that he could next run for mayor, “I was really very moved and overwhelmed by the support I got in the city of Detroit [in the 2018 election], and I want to give back.”