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...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!