KPMG

From 1996 through 2005, KPMG, the fourth largest accounting firm in the US, sold tax shelters to 250 investors who claimed they were defrauded. The class action lawsuit sought compensation from KPMG and the law firm of Sidley Austin Brown & Wood that provided legal advice on the shelters. Last year, KPMG agreed to pay $456 million and admitted to wrongdoing to resolve a federal probe into the shelters which allegedly helped wealthy Americans avoid paying approximately $2.5 billion in income taxes. A US judge has approved a final settlement of $154 million that KPMG will pay and ends a dispute among investors who claim they were defrauded and accountants who claim their investors knew the risks of tax shelters. (Jun-03-06) [YAHOO NEWS]