The Superior Court of the District of Columbia has dismissed a civil lawsuit against the US business intelligence company MicroStrategy, which alleged that the company helped its co-founder Michael Saylor to evade paying income tax.
According to a recent presentationSaylor and MicroStrategy filed a motion to dismiss the lawsuit in October, and the court ruled in favor of the petition on February 28.
Court Dismisses Civil Lawsuit Against MicroStrategy
Recall that in August, the Washington District of Columbia, through its Attorney General’s office, sued Saylor for evading income taxes for more than ten years and MicroStrategy for aiding the Bitcoin proponent on the spot.
crypto potato reported that the case, which was the first under DC’s newly amended False Claims Act, sought payments of up to $25 million in owed income taxes and undisclosed amounts in treble damages, civil penalties and other awards.
Saylor was accused of claiming to live in Florida, a state with no income taxes, but residing in DC. The complaint alleges that he obtained a driver’s license and registered to vote in Florida to pose as a resident there. Meanwhile, the former CEO You maintained your DC residence for at least 183 days in tax years.
The publicly traded company was charged with learning of Saylor’s false claims as a Florida resident and helping him substantiate them.
Saylor will go to trial next week.
After the lawsuit was filed, Saylor and his firm filed a motion requesting that the court dismiss both complaints against him. The court has now decided to drop the charges against MicroStrategy.
The court also noted that the charges against Saylor were not dismissed and that the former CEO is scheduled to go to trial on March 10.
“The court did not dismiss the claims against Mr. Saylor alleging that Mr. Saylor failed to pay personal income taxes, interest, and penalties due. A conference on the status of the case is scheduled for March 10, 2023. The final outcome of this matter cannot be determined at this time,” the document states.
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