Three lawyers who got securities fraud charges against them dropped during a 2006 trial failed for the second time to get attorneys fees and costs under the Hyde Amendment.

The Ninth Circuit U.S. Court of Appeals today rejected claims by attorneys Daniel Chapman, Sean Flanagan and Herbert Jacobi, who argued a new internal IRS memo pertaining to their case showed the government had committed fraud on the court, therefore making them the “prevailing party” under the Hyde Amendment because the dismissal was a “judgment on the merits.” The Hyde Amendment allows defendants in certain circumstances to recover fees from the government when they prove prosecutorial misconduct.

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