Beginning in the fall of 2004, partners in Dallas-based Jenkens & Gilchrist who left the firm also left behind their capital contributions, which in some cases totaled hundreds of thousands of dollars, due to the firm’s “contingent liabilities.”
At the time, the U.S. Attorney’s Office for the Southern District of New York was conducting a criminal investigation into the firm’s Chicago-based tax practice, the Internal Revenue Service was looking at the firm’s tax advice and disgruntled tax clients had filed a federal class action suit against the firm.
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