Alston & Bird Advice Caused $7.6M Tax Bill, PE Firm Says

By Matthew Guarnaccia (March 24, 2017, 5:12 PM EDT) -- Alston & Bird LLP left a private equity firm on the hook for a $7.6 million tax liability after providing bad advice during a 2011 investment deal, a lawsuit filed in Georgia state court charges.

MSouth Equity Partners LP, as majority shareholder for LMS Intellibound Group Inc., said it had to indemnify the company that purchased LMS in 2014 after discovering a 2011 merger between LMS and another entity did not shield the company from the tax liability. MSouth alleged in its March 13 complaint that Alston & Bird, which has represented the private equity investor for years, should have known...

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