H&R Block Sues, Slams McGladrey Over Divorce

Submitted by Melissa Lajara on Fri, 07/24/2009 - 13:23

Like most other divorces, the breakup of McGladrey & Pullen and H&R Block is getting ugly -- already, there's a strong response from Block CEO Russ Smyth and a pending lawsuit from the company.

From Smyth's statement:

"We believe the path proposed by certain of M&P’s leaders is fraught with significant business and financial risk and is not in the best interest of M&P partners, employees or clients. Whether the full M&P partnership is willing to assume these immense risks remains to be seen."

M&P announced Tuesday its intention to terminate an agreement dating back to 1999 under which M&P paid Block and its RSM McGladrey subsidiary a fee to provide leased space, back-office services, payroll and other services, according to WebCPA.

Despite the fact that the companies' 10-year love affair is over, neither H&R Block nor McGladrey & Pullen have yet set their Facebook relationship status to "single."

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