The Superior Court of the District of Columbia has recently dismissed a civil complaint against American business intelligence company MicroStrategy and its co-founder Michael Saylor. The complaint was filed in August by the Washington District of Columbia’s Attorney General’s office and alleged that Saylor had evaded income taxes for more than ten years, with MicroStrategy helping him in the act. The case was the first under DC’s just amended False Claims Act, and sought payments of up to $25 million in income taxes owed and undisclosed amounts in treble damages, civil penalties, and other reliefs.
Saylor was accused of claiming to live in Florida – a state void of income taxes – but residing in DC. The complaint alleged that he secured a driver’s license and registered to vote in Florida to pose as a resident there, while maintaining his DC residence for at least 183 days in taxable years. MicroStrategy was accused of knowing about Saylor’s false claims as a Florida resident and helping him substantiate them.
After the lawsuit was filed, Saylor and his company filed a motion requesting that the court dismiss both complaints against them. The court has now ruled to quash the charges against MicroStrategy, however the charges against Saylor were not dismissed. He is scheduled to go to trial on March 10, and the final outcome of this matter is not yet determinable.