In a significant development for corporate legal advisors, a federal judge has ruled that a lawsuit against Sidley Austin LLP can proceed. The suit, initiated by brothers Luis Angel Cáceres and Luis Alfredo, alleges that the firm provided faulty tax advice over a span of two decades, culminating in a $56 million claim by the IRS. The Cáceres family eventually settled the dispute for $7 million and is now seeking to recover that amount from Sidley.
According to the judge, questions about the timeliness of the claims remain unresolved, necessitating further examination in court. However, a separate claim seeking indemnity from Sidley was deemed both “factually and legally mistaken” by the judge.
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