SC Johnson awarded $147 million in damages

SC Johnson awarded $147 million in damages SC Johnson last week was awarded $147 million in damages in a civil lawsuit that said the company paid inflated prices for trucking in return for kickbacks to the company’s transportation director and his assistant.
   The Racine, Wis.-based manufacturer of products such as Pledge furniture polish, ZipLoc plastic bags and Off! insect repellent was “gratified” that a jury found the former transportation director Milton Morris and deputy director Katherine Scheller liable for fraud and conspiracy to commit bribery and fraud. Also found guilty were trucking company executives Tom Russell of JMP Co. and Tom Buske of Buske Lines.
   SC Johnson said they were found to have violated the Wisconsin Organized Crime Act, which prohibits a pattern of racketeering activities involving bribery, mail and wire fraud, and that Morris and Scheller, were also found liable for breach of fiduciary duty to the company.
   SC Johnson said Morris and Scheller were also found liable for breach of fiduciary duty to the company.
   Attorneys for the company had asked for $101.9 million in damages, which the Racine Journal Times said was determined by comparing the company’s rates with industry benchmarks.
   Morris worked for the company from 1988 until he was fired in 2004, and the lawsuit had claimed that the corruption was underway since at least 1998.
   Reportedly the two trucking companies were awarded large portions of the company’s trucking work at inflated prices and Morris was awarded with cash, vacations and other gifts.