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E. Effect of the Lawsuit on the Business Reputation of OMCC and
Petitioner
Before the Government filed the farm loan lawsuit, the
Agriculture Department conducted an investigation in an effort to
identify all assets owned by Bob, Byron, Ann, petitioner, and
OMCC. During the investigation and the ensuing litigation, the
Government issued numerous subpoenas to various individuals and
businesses in the Willamette Valley farming community. The
investigation resulted in adverse publicity for petitioner and
OMCC. During that time, two landowners terminated land leases
with OMCC, and an equipment dealer stopped selling farm equipment
to OMCC. During 1997, 1998, and 1999, OMCC’s gross receipts from
farming were $1,414,767, $1,085,209, and $837,388, respectively.
F. Settlement Agreement
On December 19, 1997, the Government entered into a
settlement with OMCC and all of the defendants in the farm loan
lawsuit. In the settlement: (1) The parties agreed that
petitioner would cause to be paid to the United States the sum of
$625,000 within 120 days; (2) the Government released the
defendants and OMCC, and the defendants and OMCC released the
Government, from all civil claims, demands, rights, and causes of
action of whatever kind related to the subject of the action; (3)
the parties agreed that (a) nothing in the agreement was an
admission of any liability or wrongdoing by any party or person
released herein, all of which parties and persons thereby
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