Judge Lewis Kaplan of the S.D.N.Y. today granted 13 of 16 KPMG partners’ motions to dismiss the indictments brought against them by federal prosecutors concerning allegedly fraudulent tax shelters at KPMG.

Judge Kaplan concludes that “The Department of Justice, in promulgating the aspects of the Thompson Memorandum here at issue, and the USAO in the respects discussed above and in Stein I, deliberately or callously prevented many of these defendants from obtaining funds for their defense that they lawfully would have had absent the government’s interference.  They thereby foreclosed these defendants from presenting the defenses they wished to present and, in some cases, even deprived them of counsel of their choice.  This is intolerable in a society that holds itself out to the world as a paragon of justice.  The responsibility for the dismissal of this indictment as to thirteen defendants lies with the government.”

A copy of the Court’s 68-page decision is attached here.  We will post a further analysis of the decision shortly.