Judge Refuses To Toss KPMG Suit Over Legal Fees

Law360, New York (September 7, 2006, 12:00 AM EDT) -- Accounting firm KPMG LLP may still have to foot the legal bills for sixteen former executives implicated in the tax-shelter scandal, after a judge refused to dismiss the suit they filed against the company.

The executives, who have all been indicted on criminal fraud charges relating to the creation and sale of allegedly improper tax shelters, filed the suit claiming that although their contracts mandated that KPMG pay their legal fees, the firm cut them off once they stopped cooperating with federal prosecutors.

“These defendants claim...
To view the full article, register now.