By TODD RICHMOND
Associated Press
Associated Press
MADISON, Wis. (AP) — Nearly a dozen lawsuits that could net
the state millions of dollars are in limbo thanks to a dispute between
Democratic Attorney General Josh Kaul and Republicans who passed a lame-duck
law giving them final say over settlements.
State Department of Justice officials on Wednesday released
a multi-page memo they sent to the Legislature's finance committee in July
warning that they've put off resolving at least 11 cases because of the
impasse.
One case involves the University of Wisconsin System Board
of Regents' lawsuit against former UW-Oshkosh officials Richard Wells and Tom
Sonnleitner. They're accused of illegally funneling $11 million to the
UW-Oshkosh Foundation to help it execute building projects and illegally
promising to back the foundation's loans. The foundation ultimately defaulted
on the loans and filed for bankruptcy.
"The parties have worked for some time to negotiate the
resolution of this matter," the Justice Department memo said. "They
are now waiting on this Committee's approval before finalizing an
agreement."
In another case, the state Department of Employee Trust
Funds is suing Vitech Systems Group for failing to complete a new software
system to track state workers' retirement benefits. The ETF has sued Vitech and
the company has filed a counter-claim for $14.3 million that it says the state
still owes it. The Justice Department memo warns that another company has purchased
Vitech, which may create a "limited time window for settlement."
A third case involves the state's efforts to recover as much
as $8 million from a dental provider accused of overbilling Medicaid.
Another involves the state's lawsuit against a Waupaca sewer
service accused of dumping sewage on hay crops. The business could face tens of
thousands of dollars in forfeitures. The memo warns that a trial has been
scheduled for mid-September in that case.
Also in play is a lawsuit that Kaul filed in May in state
court against Oxycontin maker Purdue Pharma alleging that the company
intentionally downplayed the opioid pain medication's addiction risks.
Thousands of state and local governments have filed similar
lawsuits against the drugmaker. The Justice Department's July memo doesn't
mention the case, but NBC News reported Tuesday that Purdue Pharma was
negotiating a $10 billion to $12 billion umbrella settlement with state and
local governments.
Republicans passed a law during a December lame-duck session
that requires Kaul to get permission from the Republican-controlled finance
committee before the state can settle any lawsuits. Documents that the
committee and Justice Department released this week show they've been trying to
figure out how to approach such discussions.
Kaul wants committee members to sign non-disclosure
agreements before he'll talk to them about cases, citing the often-sensitive
nature of settlements. Republicans have refused to sign any agreements, saying
that they can meet in closed session and that Kaul shares information with
Democratic Gov. Tony Evers without confidentiality agreements.
Republican lawmakers sued Kaul this month, alleging that
he's not complying with the law. In a surprise move, Kaul asked the committee
to meet Tuesday to discuss settling an unknown case.
The committee met with him in a closed session. Republicans
said during a subsequent open session that Kaul wouldn't tell them anything
about the case without a confidentiality agreement, so they adjourned.
The Justice Department hasn't offered any information about
the case, but Kaul's urgent request for a committee meeting suggests he's
looking for approval on the Purdue Pharma settlement.
Aides for state Rep. John Nygren and Sen. Alberta Darling,
the finance committee co-chairs, didn't immediately respond to emails
Wednesday.
