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Companies this year will claim billions in tax breaks for settling shareholder suits accusing them of malfeasance. According to Lehman Brothers accounting and tax analyst Robert Willens, the tax code allows companies to write off payments to cover private litigation by claiming that the activities that initially led to the suits took place during the normal course of business. Says Willens: "It doesn't really matter how heinous or reprehensible the conduct was. They still get to take the deduction."
August 17, 2005 at 12:00 AM
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The original version of this story was published on Law.Com
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