Firm Reaches Settlement with US Investor for Danish Tax Agency SKAT in $2.1B Tax Fraud Litigation

Feb. 25, 2025 – Hughes Hubbard finalized a settlement on behalf of the Customs and Tax Administration of the Kingdom of Denmark, or Skatteforvaltningen (SKAT), with U.S. investor Robert Klugman, who was among those accused of participating in a $2.1 billion tax fraud scheme related to fraudulently claiming refunds on tax withheld from stock dividends.

On Feb. 24, Hughes Hubbard lawyers and lawyers for Klugman told the U.S. District Court for the Southern District of New York in a series of filings that they entered agreements resolving SKAT’s claims against Klugman and his associated RAK Investment Trust.

Details of the settlement were not disclosed. Additional trials for additional SKAT cases are scheduled for later this year. This comes just weeks after the firm secured a sweeping victory on behalf of SKAT in a bellwether jury trial presided over by Judge Lewis A. Kaplan in the U.S. District Court for the Southern District of New York. After the five-week trial, the jury found the defendants liable for fraud, negligence and unjust enrichment, and awarded SKAT ~$500 million in damages. Klugman was a defendant in the five-week jury trial but reached an agreement in principle with SKAT as trial was about to commence.

Law360 reported on the settlement.

Marc Weinstein, Bill Maguire, Neil Oxford and Dustin Smith led the Hughes Hubbard team representing SKAT, with key assistance from Greg Farrell, Carolyn Harbus, Scott Sanders, Jessica Lagnado, John McGoey, Debbie Placid, Elizabeth Zhou, James Henseler, Erin Pamukcu, Kiran Rosenkilde, Richard Bosch and Sean Aiello.