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NY law firm, Moody's settle whistleblower suit

Kirby McInerney LLP secured an $8.5 million recovery in a whistleblower case alleging underpayment of taxes by Moody's Corp. and various affiliates to New York City and New York state.

A former Moody's employee alleged that the company, aided and abetted Marsh & McLennan Cos. Inc., underpaid business taxes between 2002 and 2014. Moody's mischaracterized its income as supposed premiums to its wholly owned captive insurance subsidiary, the whistleblower claimed.

The New York-based law firm represented the whistleblower after the government declined to pursue the claims.

New York City and New York state will share in the recovery of millions of dollars, according to Kirby McInerney.