Serene Warren Lawsuit 2026, Minnesota Court Reverses $40M Award In Evenstad Family Estate Fight Family Trust Dispute
The Minnesota Court of Appeals has remanded a years-long dispute among members of the Evenstad family, which gained wealth through ownership of a generic pharmaceutical company. On April 7, 2025, the appeals court reversed parts of a 2023 ruling that denied Serene Warren’s buyout request from her family’s holding company ACOVA. However, this is a private family trust and estate dispute over a $1 billion pharmaceutical company sale—not a consumer class action with public claim forms or settlement eligibility for the general public.
What Is The Serene Warren Lawsuit About?
Serene Warren sued her family members and the trustee of her family trusts in March 2018, alleging her father Ken Evenstad and brother Mark Evenstad unfairly enriched themselves at her expense during and after the 2017 sale of Upsher-Smith Laboratories. Warren is entitled to less than a quarter of the $228 million she sought from the $1 billion sale of her family’s pharmaceutical company, Upsher-Smith Laboratories, according to a March 2023 ruling by Hennepin County Judge Edward Wahl.
The case centers on allegations of breach of fiduciary duty, unjust enrichment, and unfair treatment related to decisions Ken and Mark made as directors and officers of the family business. Warren brought claims related to decisions Ken and Mark made as directors, officers, and beneficial shareholders of ACOVA and USL that she contends were unfairly prejudicial to her and improperly benefited Ken and Mark.
Litigation Background And Key Disputes
The Evenstad family built their fortune through Upsher-Smith Laboratories (USL), a generic pharmaceutical company. When family conflicts arose, they formed ACOVA Inc. to sell USL’s assets. The pharmaceutical company was sold in 2017 for more than $1 billion, and the proceeds were placed in ACOVA.
Warren’s claims focused primarily on $75 million in bonuses Ken and Mark paid themselves following the sale. She argued these bonuses improperly diluted the company’s remaining capital, reducing the value of her stake in the business. Warren also challenged Howard Rubin’s administration of various family trusts that owned ACOVA shares.
Ken Evenstad died in 2020. Warren’s decision to cut off most communication with her family after 2016—even though her father had a terminal illness that led to his 2020 death—a decision that could have affected her inheritance, according to Judge Wahl’s 2023 ruling.
March 2023 Trial Court Ruling
In his 354-page March 2023 order, Judge Wahl awarded Warren’s trusts over $40 million from ACOVA under Minnesota’s corporate oppression statute. However, he denied her claims against trustee Howard Rubin for breach of fiduciary duty and dismissed many of her other claims.
Through the course of her life, according to the ruling, Warren received more than $328 million “from the generosity of her parents”. This included $119 million in 2017 from the sale of Upsher-Smith and an additional $71 million in distributions from asset sales since 2018. Judge Wahl criticized Warren for pursuing “this tragic litigation” when the family could have settled years earlier in ways fair to all parties.
April 2025 Appeals Court Decision
On April 7, 2025, the Minnesota Court of Appeals reversed and remanded in a published opinion in Warren v. ACOVA, Inc. The appeals court made several significant rulings reinstating some of Warren’s claims while reversing others.
The court reversed the trial court’s dismissal of Warren’s claims against trustee Howard Rubin and remanded those for reconsideration. The Court of Appeals also reversed and remanded the district court’s pretrial dismissal of Warren’s unjust-enrichment claim against Ken.
However, the appeals court also reversed the $40 million equitable relief award granted to Warren under Minnesota’s corporate oppression statute. The court determined Warren lacks standing to bring such an action as a beneficial owner of ACOVA shares, but remanded for the district court to consider alternative bases for standing.
Current Status As Of February 2026
The case has been remanded back to Hennepin County District Court for further proceedings on the claims the appeals court reinstated. Minneapolis attorney Steven Wells, who represents Warren, said “There is much for us to be grateful for in this complex order, including the reinstatement of Ms. Warren’s substantial claims against the trustee”.
Warren’s attorney expressed confidence that their money judgment will be upheld following remand proceedings. The Evenstad family’s attorney stated the family remains grateful for the court’s recognition of Ken and Grace Evenstad’s generosity and accomplishments.
No trial dates or settlement negotiations have been publicly announced as of February 2026. The remanded proceedings will determine what, if any, additional compensation Warren receives beyond the hundreds of millions she’s already obtained from the family business.
Is There A Consumer Settlement Or Claim Form?
No. This lawsuit involves a private family dispute over trust administration and corporate governance within a closely held family business. There is no consumer class action, no public settlement, and no claim forms for anyone outside the Evenstad family.
Customers who purchased Upsher-Smith generic pharmaceuticals, employees of the company, or members of the general public cannot file claims or participate in this litigation. The case affects only Warren, her family members, and the trusts that own ACOVA shares.
Who Are The Parties?
Plaintiff/Appellant: Serene E. Warren (daughter of Ken and Grace Evenstad, sister of Mark Evenstad)
Defendants/Respondents:
- ACOVA, Inc. (family holding company)
- Mark B. Evenstad (Warren’s brother, former CEO of Upsher-Smith)
- Kenneth L. Evenstad (Warren’s father, deceased 2020)
- Grace Evenstad (Warren’s mother)
- Howard J. Rubin (trustee of family trusts)
Courts:
- Trial Court: Hennepin County District Court (Judge Edward Wahl)
- Appellate Court: Minnesota Court of Appeals
Common Misconceptions About The Warren Lawsuit
Misconception: This is a consumer product liability case about defective pharmaceuticals.
Reality: This is a family estate and trust dispute about business decisions and inheritance rights.
Misconception: Consumers can file claims or receive settlement money.
Reality: Only Warren and her family trusts are parties to this private litigation.
Misconception: Warren was disinherited and received nothing.
Reality: Warren received over $328 million during her lifetime, including $119 million from the 2017 sale plus $71 million in additional distributions.
What Happens Next?
The case returns to Hennepin County District Court for proceedings on the remanded claims, including Warren’s breach of fiduciary duty allegations against trustee Rubin and her unjust enrichment claim against her deceased father’s estate. The district court must also reconsider whether Warren has standing to pursue corporate oppression claims under alternative legal theories.
Legal experts expect the remand proceedings to take months or potentially years before final resolution. Both sides may pursue settlement negotiations to avoid continued litigation costs and public scrutiny of family financial matters.
Industry observers note this case illustrates the complex legal issues that arise when wealthy families transition from operating businesses to managing liquidation proceeds through holding companies and trusts.
FAQs
What is the Serene Warren lawsuit about?
The Serene Warren lawsuit is a family dispute over the administration of trusts and business decisions following the $1 billion sale of Upsher-Smith Laboratories in 2017. Warren claims her father and brother unfairly enriched themselves through $75 million in bonuses and other decisions that prejudiced her financial interests as a trust beneficiary.
Can I file a claim in the Serene Warren case?
No. This is a private family trust and estate dispute. Only Serene Warren, her family members, and the family trusts are parties to this litigation. There is no consumer class action or public claim process.
How much money has Serene Warren received?
Warren received over $328 million throughout her lifetime from her family’s generosity, including $119 million from the 2017 sale of Upsher-Smith and an additional $71 million in distributions from subsequent asset sales. She originally sought $228 million more but was awarded approximately $52 million in the 2023 trial court ruling, though that award was reversed on appeal.
What did the Minnesota Court of Appeals decide in 2025?
On April 7, 2025, the appeals court reversed the trial court’s dismissal of Warren’s claims against the family trust’s trustee and her unjust enrichment claim against her deceased father. However, the court also reversed the $40 million award Warren received, finding she lacked proper standing, and remanded the case for further proceedings.
Is this case related to Upsher-Smith pharmaceutical products?
No. While Warren’s family wealth came from owning Upsher-Smith Laboratories, this lawsuit does not involve product liability, drug safety, or consumer harm. It’s purely a business and estate dispute about how family members and trustees managed the sale proceeds and distributions.
Why did Serene Warren’s parents disinherit her?
According to court documents, Ken and Grace Evenstad disinherited Warren after she demanded the sale of Upsher-Smith in 2017 and cut off most communication with her family after 2016, even during her father’s terminal illness. The judge noted Warren’s life choices and estrangement from family affected her inheritance.
When will the Serene Warren case be resolved?
Unknown. The case has been remanded to district court for further proceedings on reinstated claims. Legal resolution could take months or years depending on whether the parties settle or proceed to additional hearings and potential appeals.
Last Updated: February 11, 2026
Disclaimer: This article provides general information about the Serene Warren family trust litigation and is not legal advice. This is a private family dispute with no consumer claim process.
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About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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