High court will hear Koss appeal in Sachdeva theft
Koss Corp. will get one more shot at holding Park Bank partly accountable for losses Koss sustained in the $34 million embezzlement by former executive Sujata “Sue” Sachdeva.
The Wisconsin Supreme Court has agreed to hear the Milwaukee headphone company’s appeal of a decision last December absolving Park Bank of legal responsibility in the massive theft.
Koss lost its case against Park Bank in Milwaukee County Circuit Court in 2016. Three months ago, the state Court of Appeals upheld the Circuit Court decision. However, the Wisconsin Supreme Court decided to accept the case this week.
Sachdeva spent millions of stolen money on designer clothing, pricey shoes, antiques, jewelry and expensive vacations before her arrest in 2009. Sentenced to 11 years in prison, she was released last April after six years, with her term reduced for good behavior and her cooperation with federal authorities.
Besides Park Bank, Koss also sued American Express Co. and accounting firm Grant Thornton, alleging that they should have alerted Koss to Sachdeva’s misappropriation of company funds.
Grant Thornton, which had audited Koss’ books during part of the time Sachdeva was stealing, agreed in 2013 to pay Koss $8.5 million. In 2016, American Express agreed to pay Koss $3 million to settle its lawsuit.
Attorney Michael Avenatti, who represents Koss in the Park Bank case, also is the lawyer for porn actress Stephanie Clifford — better known as Stormy Daniels — who has said she had an affair with President Donald Trump in 2006.