The lawsuit alleges that Campbell maintained sole control over the Association’s finances and board of directors from 2020 through April 2024 through NSRC and Shores Resort Company. According to the complaint, in March 2024, NSRC faced a water service shut-off notice from the City of Two Harbors due to overdue bills. Court documents state that Campbell and NSRC transferred $99,677.85 from the Association’s bank accounts to cover the debt. The Association believes that these utility expenses were Campbell's operational obligation and that individual unit owners had already paid these costs through monthly rental management invoices.

Second, the lawsuit states that between April 1 and July 25, 2024, the resort generated approximately $1.23 million in revenue. However, the Association alleges that Campbell, through his businesses, failed to provide financial reports or distribute net income to unit owners during that period. Additionally, court documents allege that Campbell's companies owe between $100,000 and $120,000 in outstanding association dues for units they owned within the complex.

The lawsuit lists four primary counts against Campbell and his businesses, which include conversion, civil theft under Minnesota law, breach of fiduciary duty, and unjust enrichment. The Association is asking for $99,677.85 in transferred funds, payment for the past-due association dues, punitive damages equal to the value of the allegedly stolen "property" (funds), and compensation for legal fees. 

In July 2024, a Lake County judge issued an order removing Campbell from management at Superior Shores following separate allegations that he had failed to make nearly $13 million in payments required under a contract for deed. Management of the resort was subsequently transferred to a court-appointed entity, Kinseth Hospitality Companies, Inc., on July 26, 2024.

The April 2026 lawsuit argues that the appointment of Kinseth Hospitality Companies, Inc. did not resolve the financial obligations of Campbell and his businesses to the Association. 

Following the fire that destroyed the historic Lutsen Resort in February 2024, investigations into Campbell's business finances revealed more than $14 million in total debt across his various businesses, including the property in Two Harbors. 

Campbell was charged in Cook County District Court in December 2025 with four felony counts, including three counts of first-degree arson and one count of insurance fraud, following a 22-month state investigation into the February 2024 Lutsen Resort fire. Cook County prosecutors have stated that the criminal complaints represent allegations, and Campbell remains innocent until proven guilty in a court of law.

A remote scheduling conference is set for May 21, 2026, at 8 a.m. in the Lake County District Court.