Lawsuit targeting Foxconn says Taiwanese company violated contract in Wisconsin

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RACINE COUNTY, Wis. (CBS 58) -- Foxconn is the target of a lawsuit filed this week in Racine County. 

The suit claims the Taiwanese electronics giant violated its contract in Wisconsin. Foxconn agreed to build a large manufacturing complex in Mount Pleasant.

The lawsuit, filed by a real estate development company, says Foxconn promised a "Generation 10.5" plant, but has scaled back its size. It also says Foxconn has not lived up to its promises on hiring or investments. 

Meanwhile local governments have spent hundreds of millions of dollars to buy land and make improvements to pave the way for the project. 

"The amounts are tremendous amounts for a county or municipality to bear and yes, we are seeking dollar amounts on behalf of the municipality because ultimately this traces back to taxpayers," said David DeBruin, attorney for plaintiffs. 

A joint statement from Mount Pleasant and Racine County avoids direct comment on the lawsuit, but it does say that Foxconn is meeting all its financial obligations, adding that the company is "already the largest taxpayer" in the village and county. 

Foxconn Technology Group on Friday, Feb. 5, released the following statement: 

"As a matter of company policy, we do not comment on specific matters before the courts. Foxconn continues to fulfill its financial obligations under the local development agreement and is proud to be the largest taxpayer in the Village of Mount Pleasant and Racine County.”

Read the entire statement from Mount Pleasant and Racine County below: 

“While we cannot comment on the lawsuit, as it involves a pending legal matter, what we can say is that Foxconn Technology Group continues to fulfill all of its financial obligations under the local development agreement and is already the largest taxpayer in the Village of Mount Pleasant and in Racine County.

“The Village and County have experienced significant benefits from Foxconn’s development in our community -- including the more than $750 million the company has already invested here. We remain confident that the strong protections in the development agreement put in place by local officials will fully protect the taxpayers of Mount Pleasant and Racine County.”
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