The Wisconsin Supreme Court on Tuesday upheld lower court rulings that dismissed a lawsuit filed by Milwaukee-based Koss Corp. against Park Bank for its handling of Sujata “Sue” Sachdeva’s $34 million embezzlement from the company.
Koss had alleged Milwaukee-based Park Bank had acted in bad faith in its handling of Sachdeva’s actions. Over a 12-year period, the former vice president of finance at Koss had used her position to embezzle millions from the company, using the funds to pay for her own expensive shopping purchases.
Sachdeva eventually pleaded guilty to embezzlement charges and was sentenced to 11 years in federal prison. She was released in 2017 after serving six years.
Koss originally filed its lawsuit against Park Bank in 2010. In 2016, Milwaukee County judge David Borowski granted the bank’s motion for summary judgment. In 2017, a state appeals court upheld the decision.
Borowski found that while the bank’s actions may have been negligent, Koss had not shown the bank acted in bad faith. The appeals court reached a similar conclusion, noting that while the transactions might “appear suspicious or odd in hindsight” they were not enough to put the bank on notice of Sachdeva’s misconduct.
Read more in BizTimes Milwaukee.
WBA will provide an in-depth analysis of the decision and its effect on the banking industry soon.
Read the Court’s full decision here.
View WBA’s amicus brief here.