KIMBERLY, WI (WTAQ) – A school district in the Fox Valley has reached its final settlement in its lawsuit with the Royal Bank of Canada.
Five Wisconsin school districts, including the Kimberly Area School District, have received a settlement total of $217.9 million.
In 2008, Kimberly, Kenosha, Waukesha, Whitefish Bay, West-Allis West Milwaukee school districts, sued two investment firms for misconduct for selling risky investments.
The districts believed the money was directed to low-risk investments for retired teachers’ benefits but was rather invested in high risk mortgages.
Dr. Robert Mayfield, Superintendent of the Kimberly School District, said:“While no one ever wishes for litigation, I’m extremely proud of what the districts and our lawyers were able to accomplish together. Not only is this settlement with RBC a tremendous result from a monetary perspective, but I think it will also serve as a deterrent to other firms who may be tempted to try to take advantage of small municipal investors like us in the future.”
The school districts received 109% of the amount originally invested. This settlement is the second largest civil settlement in state history.
