NEW YORK – A federal appeals court says a criminal case against more than a dozen former KPMG tax firm employees was properly dismissed.

The 2nd U.S. Circuit Court of Appeals in Manhattan issued the ruling Thursday.

It says the federal government interfered with the global tax firm's practice of providing legal assistance to its employees by pressuring KPMG to limit or end the practice.

The appeals court says the government's overwhelming influence interfered with the rights of the employees to defend themselves.

A judge had tossed out conspiracy and tax evasion charges against 13 former KPMG employees last year. Charges remain against four other people.