. .

Invest in your success.
JVRA helps lawyers win cases by providing critical information you can use to establish precedent, determine demand and win arguments.

ARTICLE ID 191686

$________ BENCH AWARD – PROFESSIONAL MALPRACTICE – ACCOUNTING – COURT RULES ACCOUNTING GIANT COMMITTED FRAUD, MALPRACTICE – LOSS TO REPUTATION.

Kenton Circuit Court

In this case, a businessman sued one of the largest accounting firms in America for their sale of an abusive tax shelter. The matter was resolved via bench verdict after the defendant denied negligence.

In early ________, accounting giant Grant Thornton enrolled the plaintiff Bill Y. in a tax strategy called "Lev301". The plaintiff, Bill Y., was president of Columbia Sussex Corporation, a Northern Kentucky-based hotel company. The Lev301 project was intended to be used to move clients’ offshore money into the United States with minimal tax consequences. This sale took place during a period in which the States Treasury was cracking down on perceived tax shelters. The plaintiff alleged that they were sold this product despite the defendant knowing that the IRS would characterize it as an abusive tax shelter. The defendant did not inform the plaintiff of this. This failure to notify and the firm’s tax advice were faulted in losing the family millions in taxes, penalties and interest.

The plaintiff filed suit in the Circuit Court of Kenton County, accusing the defendant Grant Thornton of selling them an abusive tax product. The plaintiffs Bill Y., his wife Martha Y. and the ________ William J. Yung Family Trust sought recovery of damages from the defendant for fraud and negligence. The plaintiff further asserted that the defendant’s actions had harmed his reputation, contributing to his ________ failure to secure licensure from the Missouri Gaming Commission. The defendant denied the allegation.

Over the course of six years of litigation and a month of trial, the plaintiffs made their case for Grant Thornton’s liability. The plaintiffs asserted that the defendants knew with near-certainty that the IRS would reject their Lev301 plan, but hid that information from their client. Further, after the plaintiffs expressed concern about the plan, the defendant falsely asserted that they had used the plan successfully with companies Proctor & Gamble Co. and General Electric.After seven weeks of trial, Judge Summe rendered a $________ million judgment in the plaintiffs’ favor, concluding that Grant Thornton had committed fraud and malpractice. The judge ordered the defendant to pay the plaintiffs $________ million in compensatory damages, and $80 million in punitive damages.

To read the full article, please login to your account or purchase

5 ways to win with JVRA

JVRA gives you jurisdiction-specific, year-round insight into the strategies, arguments and tactics that win. Successful attorneys come to the table prepared and use JVRA to:

  1. Determine if a case is winnable and recovery amounts.
  2. Determine reasonable demand for a case early on.
  3. Support a settlement demand by establishing precedent.
  4. Research trial strategies, tactics and arguments.
  5. Defeat or support post-trial motions through past case histories.

Try JVRA for a day or a month, or sign up for our deluxe Litigation Support Plan and put the intelligence of JVRA to work for all of your clients. See our subscription plans.


Your cart is empty
Let Our expert Researchers Do The Searching For You! Pro Search Service