The other shoe dropped Monday in the government’s crippled tax shelter prosecution against former KPMG employees as Southern District of New York Judge Lewis Kaplan dismissed charges against 13 of 16 defendants.

It was a decision sought by prosecutors, who want the 2nd U.S. Circuit Court of Appeals to unwind Kaplan’s earlier ruling that the government violated the U.S. Constitution by using its leverage to force the accounting firm to stop paying the legal fees of indicted partners and employees.

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