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Can Nonprofit Lawyers Disclose Diversion of Charitable Assets? PA Supreme Court Takes Up Issue

The Pennsylvania Supreme Court has taken up a sealed case to consider whether a lawyer for a nonprofit corporation can break her duty of confidentiality and disclose her concerns to the Attorney General's Office that charitable assets are being unlawfully diverted, The Legal Intelligencer's Lizzy McLellan reports. The anonymous petitioner said the public charity had a fiduciary duty to the public and the charity's lawyer was permitted to disclose the diversion of public charitable resources into private pockets to the attorney general.

Nonprofit practitioner Penina K. Lieber told The Legal that "'attorney-client privilege is not destroyed by the fact that you have a tax-exempt status,'" and the organization itself should approach the attorney general.