Andersen Tax Llc

Allegations: PROFESSIONAL MALPRACTICE, BREACH OF FIDUCIARY DUTY, MASSACHUSETTS GENERAL LAWS CHAPTER 93A, MASSACHUSETTS UNIFORM SECURITIES ACT CHAPTER 110A, SECTION 410. Status: Pending Summary: A LONG-TIME TAX CLIENT OF ANDERSEN TAX LLC ("ANDERSEN") FILED A COMPLAINT AGAINST ANDERSEN IN MASSACHUSETTS STATE COURT ACCUSING ANDERSEN AND ITS MANAGING DIRECTOR OF (I) PROFESSIONAL MALPRACTICE FOR FAILING TO DISCLOSE MATERIAL FACTS IN CONNECTION WITH THE TRANSACTION AND FAILURE TO PREPARE TAX RETURNS AND OTHER ACCOUNTING ADVICE; (II) BREACH OF FIDUCIARY DUTY IN CONNECTION WITH THE POWER OF ATTORNEY AND EXECUTION OF TRANSACTION DOCUMENTS ON HIS BEHALF; (III) ENGAGING IN UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE ACTS OR PRACTICES UNDER MASSACHUSETTS GENERAL LAWS CHAPTER 93A, SECTION 2; (IV) VIOLATION OF THE MASSACHUSETTS UNIFORM SECURITIES ACT CHAPTER 110A, SECTION 410 (A) (2) AND (B) BY MATERIALLY AIDING THE SALE OF SECURITIES BY THE THIRD PARTY AND (V) SECTION 10B-5 OF THE SECURITIES AND EXCHANGE ACT OF 1934 ("10B-5 CLAIM"). ANDERSEN REMOVED THE CASE TO FEDERAL COURT AND FILED A MOTION TO DISMISS. THE FEDERAL COURT DISMISSED 10B-5 CLAIM AND REMANDED THE CASE TO STATE COURT. ANDERSEN HAS RENEWED ITS MOTION TO DISMISS IN STATE COURT. THE CLAIM ARISES OUT OF A TRANSACTION ENTERED INTO BY THE CLIENT WITH A THIRD PARTY. ANDERSEN IS VIGOROUSLY DEFENDING THE CLAIMS, BELIEVES THEM TO BE WITHOUT MERIT, AND BELIEVES THAT THE STATE LAW SECURITIES CLAIM SHOULD BE DISMISSED ON THE SAME BASIS USED BY THE FEDERAL COURT IN DISMISSING THE 10B-5 CLAIM. ANDERSEN DOES NOT BELIEVE THAT ANY INVESTMENT ADVICE WAS PROVIDED TO THE CLIENT.