Proskauer Dodges Tax Shelter Fraud Appeal

Law360, New York (October 27, 2010, 7:20 PM EDT) -- Proskauer Rose LLP has survived an appeal from investors who accused it of helping to advance an illegal tax avoidance scheme, escaping liability on grounds that its role in the matter was too remote to constitute federal securities fraud.

The plaintiffs, who were forced to pay the federal government millions of dollars in penalties after a 2001 IRS investigation, failed to show they relied directly on advice from Proskauer, according to a three-judge panel on the U.S. Court of Appeals for the Fifth Circuit, affirming a...
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