The U.S. Supreme Court on Monday threw out a case about the scope of attorney-client privilege involving a law firm's bid to withhold records from prosecutors related to a cryptocurrency-promoting client in a tax investigation.
"dismissed as improvidently granted" an appeal by an unnamed law firm of court orders holding it in contempt for not turning over records related to one of its clients in response to a federal grand jury subpoena.
According to court papers, the law firm specializes in international tax issues and advised a client the U.S. Department of Justice says was an early promoter of bitcoin who expatriated himself from the United States in 2014. In response to a grand jury subpoena seeking records related to the preparation of the client's tax returns, the firm produced over 20,000 pages of records but withheld others, citing attorney-client privilege.
But the San Francisco-based 9th U.S. Circuit Court of Appeals upheld the lower-court judge in saying legal advice had to be the "primary" purpose of the communication to qualify for attorney-client privilege.
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