A class action lawsuit has been filed in the District Court of Nebraska against Grant Thorton International for fraud and negligence. Class members seek compensatory and punitive damages, taxes, interest, penalties, attorney's fees and costs of the litigation.
Specifically, the complaint alleges that the defendants provided the plaintiffs with negligent, reckless, improper, extreme, wanton and incomplete tax planning, tax advice, tax return preparation, accounting and financial advice and services, legal advice and services.
More specifically, the complaint alleges that from 1998 to 2001, the plaintiffs realized income and profits from the operations of Drake-Williams Steel, Inc. and had to pay taxes on those profits. The plaintiffs claimed they were lured into inappropriate tax strategies that promised them:
• tax avoidance, tax reduction or tax deferral over several years
• that the tax strategies were legal and legitimate
• that they would receive first class tax and legal advice
• that the defendants were the only services that the plaintiffs would need
As a result of the defendants' negligence, much of the tax avoidance was later realized by the Internal Revenue Service (IRS) and now the plaintiffs must pay those sums.