US judge withholds approval of KPMG tax shelter settlement.

In an apparent victory for the dissenters of this large class action tax shelter case, Judge Dennis Cavanaugh refused to grant initial approval of the $275 million settlement negotiated with lead counsel, Miberg Weiss.

Instead he scheduled a second hearing for October 28th in which he will give a fuller hearing to the dissenters in this matter, who have stated issues exist in which they feel their are potential conflicts with lead counsel and that the settlement might not be in the best interests of all plaintiffs. After the ruling Attorney Melvin I. Weiss stated that the new hearing will allow them to clear the air on these linger questions.