Sotheby’s has agreed to pay $6.25 million to settle a lawsuit brought by New York Attorney General Letitia James, accusing the auction house of helping clients evade sales taxes on art purchases from 2010 to 2020. The lawsuit claimed that Sotheby’s facilitated the misuse of 'resale certificates' to falsely classify clients as art dealers, allowing them to avoid taxes on purchases amounting to tens of millions of dollars. One key client, who spent over $27 million on artworks by notable artists, was reportedly aided by Sotheby’s employees in displaying these pieces in his home. Although Sotheby’s did not admit wrongdoing, the settlement includes reforms to their policies on resale certificates and enhanced employee training. James emphasized that Sotheby’s actions undermined tax compliance and hurt New York state revenues. This agreement follows a related case where the client’s company had previously settled for $10.75 million over similar claims.