Wisconsin cases worth millions in limbo due to lame-duck law

MADISON, Wis. (AP) — More than 15 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 two multi-page memos they sent to the Legislature's finance committee on July 19 and Aug. 19 warning that they've put off resolving at least 16 cases because of the impasse.

The July 19 memo mentions 11 cases. One 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...