Wis. Supreme Court deadlocked in corporate looting case
MADISON, Wis. (Legal Newsline)-The Wisconsin Supreme Court could not decide whether the former owners of a manufacturing company should be forced to pay back millions of dollars they paid themselves as their company floundered.
In a 3-3 decision released Tuesday, the state's high court could not decide whether to uphold a 2006 Grant County Circuit Court jury's decision that ordered Daniel Virnich and Jack Moores to pay back $6.5 million of the $9.7 million they were accused of skimming from Communications Products Corp.
The men were accused of taking executive compensation even as their company was not paying its bills.
Because of the deadlock, the closely watched corporate looting case was sent back to an appeals court for review.
Chief Justice Shirley Abrahamson and Justices Ann Walsh Bradley and Patrick Crooks voted to affirm the trial court ruling, while Justices David Prosser, Annette Ziegler and Michael Gableman voted to reverse the circuit court decision. Justice Pat Roggensack did not participate in the case.
From Legal Newsline: Reach staff reporter Chris Rizo at chrisrizo@legalnewsline.com.
