KPMG Sued By Former Employees Over Legal Fees

Law360 (July 13, 2006, 12:00 AM EDT) -- Accounting firm KPMG LLP is being sued by more than a dozen former employees who claim the company should pay their legal fees as they defend themselves against claims of tax fraud.

Although the lawsuit stems from a tax case ruling, and hasn't yet been tested beyond the district court level, it's a wake up call to corporations that might have been altering internal policy about paying employee legal fees.

The 15 men and one woman were encouraged to file the suit by U.S. District Judge Lewis A. Kaplan, who is overseeing a case alleging widespread tax fraud against the group....

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