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ROSENBACH v. THE DIVERSIFIED GROUP, INC.

4009, 602463/05, 590742/08.

85 A.D.3d 569 (2011)

926 N.Y.S.2d 49

2011 NY Slip Op 5345

GARY ROSENBACH et al., Plaintiffs, v. THE DIVERSIFIED GROUP, INC., et al., Defendants. THE DIVERSIFIED GROUP, INC., et al., Third-Party Plaintiffs-Respondents-Appellants, v. MARCUM & KLIEGMAN LLP et al., Third-Party Defendants, KOSTELANETZ & FINK LLP et al., Third-Party Defendants-Appellants-Respondents.

Appellate Division of the Supreme Court of New York, First Department.

Decided June 21, 2011.

In a prior arbitration proceeding, defendants/third-party plaintiffs (collectively, DGI) were found to have defrauded plaintiffs by selling them a tax shelter investment that was subsequently disallowed by the IRS. DGI, alleging that plaintiffs' losses resulted in part from the negligent tax advice they received from their attorneys and accountants, asserts third-party claims for contribution against, inter alia, K&F, plaintiffs' tax lawyers, and Weiss, the accounting...

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