E&Y facing Silicon Valley lawsuit

Five executives working in Silicon
have launched a lawsuit against Ernst
& Young.

They are claiming that Big Four firm sold them a tax shelter that left them
owing millions of dollars in taxes, penalties and damages.

According to US reports, the five men invested more than $50m (£25.6m) in
total, a sum that the Internal Revenue Service
estimates would generate $150m (£75m) in tax losses.

Four of the five plaintiffs have ties to Cisco Systems.

Ernst & Young has declined to comment, saying the firm had not yet seen
the lawsuit, which was filed on 30 January.

Further reading:

KPMG tax shelter case postponed ‘indefinitely’

Final approval for KPMG settlement

Related reading