Minnesota Attorney General Keith Ellison has filed a petition requesting the Hennepin County District Court to supervise the dissolution of Rainbow Health Minnesota. The nonprofit recently disclosed its insolvency and intention to dissolve.
Ellison's petition follows a voluntary investigation into the circumstances leading to Rainbow Health’s financial troubles. The organization has cooperated with the investigation, but concerns have been raised about its ability to prioritize payments to employees given its significant liabilities.
Court supervision is outlined under the Minnesota Nonprofit Corporation Act and is not inherently adversarial. It allows a court to manage asset disposition efficiently within a specific statutory framework.
“I believe court supervision is the proper next step in this case,” said Attorney General Ellison. “It not only minimizes the risk of separate disputes about who gets what, it can give the employees the best shot to potentially get paid. I believe the parties can resolve these issues cooperatively and efficiently with the court’s supervision.”
The Attorney General's Office (AGO) continues its investigation through its Charities Division, which holds civil enforcement authority over state nonprofit corporation laws but does not enforce criminal laws.
The public can submit complaints about nonprofits and charities via a form on the Attorney General’s website or by calling (651) 296-3353 for Metro area residents, (800) 657-3787 for Greater Minnesota, or (800) 627-3529 for Minnesota Relay users.