Wisconsin’s public records laws can’t be subverted by seeking a stay of the action in federal court.
The 7th Circuit on Nov. 29 concluded that the purposes of discovery stays in federal securities litigation would not be served by permitting public records requests to be stayed.
The City of Menasha issued millions of dollars in bonds to finance the conversion of an electric power plant it owned. The project went over budget, and Menasha defaulted on more than $20 million worth of bonds.
Owners of the bonds, including American Bank, filed suit in federal court, alleging that Menasha violated federal securities laws by failing to disclose material information about the project to prospective buyers of the bonds.
After the suit was filed, American Bank sought records related to the project under Wisconsin’s Public Records Law.
Read more here.
