Lawsuit alleging misdeeds at Commerce Dept. dropped

Updated 10:45 a.m. with department response.

A lawsuit that alleged harassment and retaliation in the upper ranks of the state Commerce Department has been set aside at the request of the plaintiff, according to a court document filed Thursday.

Timothy Vande Hey said he lacked the money to press ahead.

He had run the agency's insurance division before resigning last year. He sued this spring claiming he faced sexual advances from another senior commerce official and witnessed other misdeeds in the executive ranks. He said in his April lawsuit that staff members were told to destroy some documents to avoid making them public.

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Agency officials strongly denied the allegations, calling them "simply false." But the agency had yet to file any formal response in Ramsey County District Court. 

A request for comment from agency spokesman about the dismissal wasn't immediately returned.

In a written statement Friday, Commerce Commissioner Mike Rothman said the action confirms his belief that the lawsuit wasn't warranted.

“Voluntarily dismissing the lawsuit clearly shows that the allegations were simply false and had absolutely no merit," Rothman said. "This action demonstrates that the suit was completely frivolous.  Again, my deputy commissioner is an outstanding person and it was unfortunate that she was subjected to these false allegations in the first place.”

Vande Hey's motion to dismiss the case allows him to re-file it at a later date.

"Unfortunately I ran out of funds to pursue the case and needed to try to move forward with my life," Vande Hey said in an email Friday. "It was a difficult decision that I had to face reality of the financial requirements of such an undertaking."

Vande Hey now runs a private management consulting business. 

Vande Hey's attorney, Marshall Tanick, says his client stands behind his accusations.

"He believes the allegations are valid, but he has decided to temporarily dismiss the case with the possibility of reinstating it at some future date but he has decided to move on with his life right now," Tanick said.