Kristi Noem's Son-In-Law Sued By Former Company

A1 Development claims Kyle Peters and a business partner stole clients while Peters was still employed.

Published on Mar. 2, 2026

Watertown City Councilman Kyle Peters, who is the son-in-law of Homeland Security Secretary Kristi Noem, is facing a lawsuit from his former company A1 Development. The company claims that Peters and a business partner stole clients from A1 while Peters was still employed there, and is seeking compensatory and punitive damages.

Why it matters

The lawsuit against Kristi Noem's son-in-law raises questions about potential conflicts of interest and abuse of power, as Peters holds a public office position while also being accused of unethical business practices at his former employer.

The details

A1 Development claims that Kyle Peters and a business partner stole clients from the company while Peters was still employed there. The company is seeking compensatory and punitive damages and has demanded a jury trial, alleging that Peters' actions were "fraudulent and intentional." A1 is currently in the process of coordinating a proposed data center west of Brandon.

  • The lawsuit was filed on March 2, 2026.

The players

Kyle Peters

Watertown City Councilman and son-in-law of Homeland Security Secretary Kristi Noem.

A1 Development

Peters' former company that is suing him and a business partner for allegedly stealing clients.

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What’s next

A1 Development is currently coordinating a proposed data center west of Brandon, while the lawsuit against Kyle Peters proceeds.

The takeaway

This case highlights potential conflicts of interest and abuse of power when public officials are accused of unethical business practices at their former employers, raising concerns about transparency and accountability in local government.