The Texas lawsuit alleging that Sen. Norm Coleman fraudulently received $75,000 from longtime political patron Nasser Kazeminy has been re-instated, according to attorney Casey Wallace, who is representing plaintiff Paul McKim in the case. The lawsuit had been “unsuited,” in the parlance of Texas courts, as the two sides pursued a settlement.

“We entered into serious settlement negotiations,” says Wallace. “Those broke down today.”

Plaintiff Paul McKim

Plaintiff Paul McKim

The lawsuit alleges that Kazeminy steered $75,000 through a Texas firm he controls to Coleman through a job his wife, Laurie Coleman, held with a Minnesota insurance firm. If Coleman received such a gift and failed to report it, the repercussions could extend beyond his reelection prospects. Earlier this week, Alaska Sen. Ted Stevens was convicted of seven felony counts after failing to report gifts from friends on federal disclosure forms.

Coleman campaign manager Cullen Sheehan has denied the allegation, calling it “baseless,” and claiming that the lawsuit is politically motivated.

Wallace denies this assertion. “It was absolutely, positively not done for political purposes,” he says. “It has nothing to do with the election.”

Previous MnIndy coverage:

Video: Sen. Norm Coleman flees reporters asking about pal Kazeminy’s Texas lawsuit
Latest Coleman & Kazeminy connection: The Star Tribune needs to tell the story
Coleman and Kazeminy redux: Here’s the legal complaint in McKim v. Kazeminy et al