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Consulting Contract

This is a settlement for the Commercial lawsuit.

Racine, WI: (Feb-18-08) Public Business Consulting Group (PBCG), a private consulting firm, has been embroiled in a legal battle with the Racine Unified School District, over issues a district employee raised regarding a contract after he released several internal documents and leveled several allegations about PBCG's work in the district. The suit was filed over an investigation centered on deals brokered by Nick Alioto, PBCG's top official and former superintendent Tom Hicks. School officials claimed that many of the issues that came up during the course of an investigation into two contracts between Unified and PBCG, included the legality of the relationship between the two parties.

Sources close to the case stated that the lawsuit reached a settlement, in which the Racine Unified School District will pay more than $750,000 to sever ties with the private consulting firm. It was said that the district avoided paying an estimated $4 million in incentive pay, according to the terms of the new contract the Unified School Board approved recently. The district has already paid PBCG nearly $900,000 of a more than $1.3 million incentive fee agreement arranged between Hicks and Alioto, PBCG's president and chief executive officer. [JOURNAL TIMES ONLINE: CONSULTING CONTRACT]

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Published on Feb-19-08


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