Latest: State of Wisconsin, Talgo settle lawsuit over passenger trains

MILWAUKEE -- The state of Wisconsin will pay a Spanish manufacturer nearly $10 million for two trains it built that were never used after Gov. Scott Walker abandoned a rail project.

Talgo Inc. filed a lawsuit in 2012 over the trains it manufactured to run on an unbuilt Amtrak line between Milwaukee and Chicago. The settlement ends a dispute over ownership of the trains, with Talgo keeping the titles and receiving more than $9.7 million.

Under the agreement, Wisconsin stands to gain 30 percent of the trains' sale if Talgo finds a buyer within three years.

In 2009, then-Gov. Jim Doyle signed the deal with Talgo. After being elected, Walker rejected $810 million in federal stimulus money to pay for the new train line in Wisconsin, abandoning plans for the Talgo trains.

CLICK HERE to read more about this important development in the Milwaukee Business Journal.