Correction: All Modes Not Responsible in SC Johnson Kickback Case

December 07, 2011

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On Nov. 28,, in the article "Jury Awards SC Johnson $157 Million in Freight Fraud Case," inadvertently reported outdated and incorrect information regarding All Modes Inc., David Eggleston and Bay Darnell.

The story reported correctly that Milton Morris and Katherine Scheller had been sentenced for their roles in a scheme that defrauded SC Johnson by billing the company for inflated transportation rates and getting kickbacks.

However, based on outdated information, we also incorrectly reported that a jury had set damages for All Modes, Eggleston and Darnell and that a separate trial was expected.

In fact, there never were any criminal charges filed against the two men and the Wisconsin-based company, which Eggleston had bought from Darnell.

In 2009, a jury exonerated the men in a civil suit filed by SC Johnson, as the Racine Journal Times reports in this June 2009 article.

As Eggleston's attorney, Kenneth Ross of the Chicago-based Coleman Law Firm, told, "On June 17, 2009, after hearing evidence for over four weeks, a 12-person jury returned a unanimous verdict in favor of All Modes, Eggleston and Darnell and against SC Johnson, expressly finding that none of the All Modes parties were guilty of or liable for any of SC Johnson's allegations of wrongdoing. Once the All Modes parties had the opportunity to answer SC Johnson's allegations in their own trial, the jury found those allegations to have no merit whatsoever. After the jury returned its unanimous verdict, the court ordered SC Johnson to reimburse All Modes over $54,000 in court costs."

The editors of apologize for the error.

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