New York Supreme Court, Appellate Division
April 14, 2022
The New York appellate court affirmed the trial court decision denying defendant’s motion to dismiss the state False Claims Act suit, holding that state Attorney General had adequately alleged (1) that defendant had actual knowledge of violation of state tax law and (2) that defendant had not acted in good faith.
U.S. Chamber files amicus brief
January 10, 2022
The U.S. Chamber filed an amicus brief urging the New York appellate court to hold that a company cannot be liable under the New York False Claims Act (NYFCA) for an allegedly false tax claim unless the company has actually violated the New York Tax Law. Because the complaint in this case shows that the defendant complied with the Tax Law’s requirements, as interpreted by the New York Tax Department, the defendant’s tax records cannot possibly understate an obligation, much less be knowingly false, under the NYFCA.
Steven A. Engel and Peter J. McGinley of Dechert LLP and the U.S. Chamber’s Litigation Center served as co-counsel for the U.S. Chamber.
- Trial Court Opinion -- People of New York v. Sotheby's, Inc. (Supreme Court of New York, New York County).pdf
- U.S. Chamber Amicus Brief -- People of New York v. Sotheby's, Inc. (New York Supreme Court, Appellate Division).pdf
- Order -- People of New York v. Sotheby's, Inc. (New York Supreme Court, Appellate Division).pdf