Milwaukee-based Koss Corp. has settled the claims against its former auditor, Grant Thornton LLP, in the lawsuit pending in the Circuit Court of Cook County, Illinois, County Department, Law Division.
As part of the settlement, the parties resolved all claims involved in the litigation between Koss and its directors against Grant Thornton. With the settlement, Koss received gross proceeds of $8.5 million on July 3.
Grant Thornton was Koss Corp.’s auditor during a period of time in which former Koss vice president of finance Sujata “Sue” Sachdeva embezzled $34 million from the headphone manufacturer. Sachdeva pled guilty to embezzling and was sentenced to 11 years in federal prison.
She used company funds to pay personal bills for clothes, jewelry and other lavish items.
“The matter has been resolved to the mutual satisfaction of the Parties,” said Michael J. Koss, president and chief executive officer of Koss Corp.