N.Y. Seeks Approval of Whistleblower Tax Fraud Settlement (1)

New York wants court approval of a $100,000 settlement to resolve a whistleblower’s allegations that global headhunter Egon Zehnder defrauded the state of $13.25 million in corporate franchise cases.

The settlement “guarantees a recovery for the state,” avoids “substantial litigation risk” from the court’s rulings on the allocation of income and transfer pricing, and allows the state to “devote its resources to higher-priority matters,” the state said in a memorandum supporting its motion for approval filed Tuesday with the US District Court for the Southern District of New York.

There is a substantial risk the court could ...