MADISON, Wis. (AP) — A state appeals court says Park Bank isn't liable in a Koss Corp. executive's scheme to embezzle $34 million from the Milwaukee-based headphones manufacturer.
Sujata Sachdeva was sentenced to 11 years in federal prison in 2010 for using company funds to buy clothes, jewelry and other lavish items. Sachdeva obtained a large portion of the embezzled funds through Koss accounts at Park Bank.
Koss sued Park Bank in 2010, alleging bank officials acted in bad faith because they didn't detect or investigate the embezzlement.
The 1st District Court of Appeals ruled Tuesday that failing to prevent or detect misconduct doesn't mean the bank acted in bad faith.
Koss attorney Michael Avenatti says the company is considering asking the state Supreme Court to take the case.