A FEDERAL JUDGE’S ruling last week slamming a tactic widely used by the government to induce companies to cooperate with prosecutors could help efforts to beat back other strategies the Justice Department employs that corporations claim are overly coercive.
The decision came from Judge Lewis Kaplan of the U.S. District Court for the Southern District of New York, who is overseeing the trial of 16 former employees of the accounting firm KPMG who are accused of selling fraudulent tax shelters. In January the defendants challenged their indictments on the grounds that the government had improperly interfered with the firm’s payment of their legal fees.
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