Sidley Austin Suit Over Alleged Bad Tax Advice Advances in Part

A lawsuit alleging that Sidley Austin LLP gave decades of bad tax advice to a Georgia family leading to an IRS audit will move forward to determine whether the claims are timely, but a claim seeking indemnity from the firm is “both factually and legally mistaken,” a federal judge said.

Brothers Luis Angel Cáceres and Luis Alfredo sued the firm alleging that they and their father relied on Sidley’s tax advice for over 20 years, at which point the IRS sued for $56 million.

They settled the suit for $7 million, and then sought to recoup that amount from Sidley, ...