A Republican congressional candidate emphasizing his deep roots in northern Wisconsin settled a federal lawsuit for $44 million while based in California, court records show — raising questions about his campaign narrative as voters evaluate the crowded primary race.
A story about the settlement from the Ashland Daily Press appeared in the Jan. 30, 2026 issue of the Eau Claire Leader-Telegram. According to the story:
Paul Wassgren, 49, launched his campaign Oct. 30 for Wisconsin’s 7th Congressional District seat, investing $1 million of his own money and describing himself as a “fifth-generation Ashland resident.” But court documents and public records show he was based in California and licensed to practice law there, culminating in a 2023 settlement of a class action lawsuit that alleged his involvement in a scheme that defrauded more than 1,100 investors of $170 million.
The settlement and Wassgren’s residency history have emerged as key issues as Republican primary voters assess four candidates vying for the nomination. Also running are Michael Alfonso, Jessi Ebben, and Kevin Hermening.
Federal court records show Wassgren and his law firms — DLA Piper and Fox Rothschild — were named as defendants in a class action lawsuit filed July 21, 2020, in Florida’s Middle District. The complaint alleged Wassgren served as legal counsel for EquiAlt, a private real estate investment firm that the lawsuit alleged operated as a Ponzi scheme.
According to the complaint, Wassgren prepared offering documents and provided legal services to EquiAlt while the company solicited investments from elderly and unsophisticated investors. The lawsuit stated Wassgren “resides and is domiciled in the State of California.”
On May 15, 2023, Wassgren and the law firms agreed to pay $44 million to settle the claims. DLA Piper and Fox Rothschild each contributed $22 million to the settlement, which was approved by U.S. District Judge Mary S. Scriven.
The settlement included standard language stating the claims had “have not been proven” in court and that Wassgren and the firms denied all wrongdoing. The settlement was approved and a bar order was issued preventing future related claims.
Campaign: Lawsuit ‘frivolous’
A Wassgren spokesman described the lawsuit as frivolous and said it was ultimately dismissed after the opposing side admitted in court documents they could not prove their allegations.
The court-approved settlement agreement contains language typical of cases resolved before trial, stat- ing that allegations “have not been proven” and that no court made findings on the claims’ accuracy. This acknowledges that when cases settle, allegations are never tested at trial—not that the claims lacked merit.
The spokesman said the law firms’ insurance companies ultimately decided to settle the suit.
The spokesman also characterized the settlement’s bar order — a procedural mechanism preventing future related lawsuits — as rare and proof the case was meritless. Bar orders allow some defendants to settle and exit litigation without risk that non-settling defendants will later seek contribution from them.
The bar order in Wassgren’s case was issued only after the $44 million payment was made, court records show.
The spokesman said Wassgren has made fighting frivolous lawsuits a key campaign issue based on his firsthand experience with how such litigation clogs courts, drives up insurance rates and increases the cost of living.
The 7th Congressional District covers much of northern Wisconsin. The Republican primary will determine who advances to the general election.
Wassgren’s campaign has emphasized his business background and his family’s history in the region, noting his family once owned Mountain Valley Cheese Factory in Bayfield County.
“I’m running for Congress because we need more successful businessmen like Donald Trump and Ron Johnson to shake up the status quo and revitalize our communities,” Wassgren said in his campaign announcement.
