A defunct law firm and its former leader are suing the U.S. Treasury Department and the Internal Revenue Service in federal court in Camden for alleged illegal tax-collection practices, but the government has maintained the plaintiffs have no case.

According to the second amended complaint filed Oct. 27, plaintiff The Connelly Firm, a small litigation shop that was based in Philadelphia but had a Cherry Hill mailing address, shut its doors in December 2012 after suffering “a series of financial losses, including an embezzlement of funds by an employee bookkeeper.”

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