Stars Caberet is a nude dancing establishment in Neenah, Wisconsin. When Stars opened in 2006, the County had a zoning ordinance that restricted the location of adult businesses to certain zoning districts and required a conditional use for their operation. In Stars' first lawsuit against the County, it challenged the constitutionality of the 2006 ordinance. During the pending lawsuit, the County amended the ordinance and Stars' dismissed its lawsuit. However, Stars brought a second lawsuit to challenge the 2007 amendment, and the court enjoined the County from enforcing the conditional use requirement, but upheld the remainder of the ordinance based on the ordinance's severability provision.
Following the decision in the second lawsuit, the County informed Stars that it could not continue its operations because the business was never legal. Stars subsequently filed a third lawsuit asking the judge to declare its operation lawful under federal law or, in the alternative, a legal nonconforming use under state law. The district court ruled against Stars, finding that notwithstanding the ordinance's illegality, the business as unlawful when it opened in 2006.