The law firm of Kirby McInerney LLP announced today a $105 million settlement in a case the firm filed on behalf of its whistleblower client against hedge fund billionaire Thomas Sandell and his business Sandell Asset Management Corporation.  The settlement is the largest income tax recovery under the New York False Claims Act.

On October 15, 2020, the Honorable Michael A. Shipp of the United States Court for the District of New Jersey appointed Karen M. Lerner to the Executive Committee in In re Bank of Nova Scotia Spoofing Litigation, 20 Civ. 11059 (D.N.J.).  The case originates from the Bank of Nova Scotia’s alleged price manipulation of gold and silver futures contracts traded on the Commodity Exchange, Inc. over the course of several years, which formed the basis of the bank’s recent settlement with the CFTC and the DOJ for $77.4 million.

Maryland residents who suspect tax fraud would be able to tip off the state tax agency and receive a monetary reward if the agency recovered money, in an IRS-like program approved by state lawmakers and sent to the state's governor.

In 2010, New York amended its False Claims Act to enable whistleblowers to sue individual and corporate defendants with a net income or sales exceeding $1 million that cheated on their taxes in excess of $350,000. Other states are considering similar legislation. Randall Fox of Kirby McInerney LLP debunks some common fallacies regarding the New York law.

“Kirby played an integral role in this case and assumed significant risk… Kirby’s work was at a very high level [and] Kirby’s work greatly benefited the Class.”

“Let me just say… that this has been an extraordinarily well-tried case. I want to thank counsel for both sides and your supporting staffs for your courtesies to the bench. I was very impressed by the fact that you were all so very well prepared with the demonstratives and the binders, etc…. it was all expertly – expertly – choreographed.”

KM received the highest available commendations from the City of New York four years in a row for its work on the AWP Litigation. In each of those four years, KM’s efforts on the City’s behalf received the overall rating of “excellent”. The City elaborated, “Kirby did a truly excellent job and the results reflect that.”

“[KM] represented us diligently and successfully. Throughout [KM’s] representation of our firm, [KM’s] commitment and attention to client concerns were unimpeachable.”