DLA Piper accuses Facebook of intimidation as firm responds to fraud allegations
DLA Piper has accused Facebook and its founder Mark Zuckerberg of trying to "intimidate lawyers from bringing litigation against Facebook," in response to a suit filed against the firm in the US.
October 21, 2014 at 06:19 AM
3 minute read
DLA Piper has accused Facebook and its founder Mark Zuckerberg of trying to "intimidate lawyers from bringing litigation against Facebook," in response to a suit filed against the firm in the US.
Facebook is suing DLA, alleging that the firm "used its good reputation as one of the largest international law firms in the world to bolster the credibility" of a claim brought against the social media titan, despite knowing it was fraudulent.
DLA represented plaintiff Paul Ceglia against Facebook in 2010 when he claimed that he was entitled to a 50% stake in the company as a result of a contract between himself and Zuckerberg.
In the new lawsuit, filed in the New York Supreme Court, Facebook and Zuckerberg claim that Ceglia's remaining legal advisers, which included DLA Piper, continued with the case, even after co-counsel, Kasowitz, Benson, Torres & Friedman, discovered the fraud and withdrew.
DLA Piper, along with a number of Ceglia's other lawyers, later withdrew from the case without public explanation, with Facebook alleging they knew their client's claim was fraudulent.
Lippes Mathias Wexler Friedman, Milberg and Paul Argentieri & Associates are listed alongside DLA Piper as defendants in the suit.
In the filing, Facebook said: "Plaintiffs Facebook and Zuckerberg bring this lawsuit for malicious prosecution and deceit and collusion with intent to deceive the court… to recover damages they incurred as a result of Defendant's fraudulent lawsuit."
The original claim was dismissed by the federal court on the grounds that it was a fraud and contracts on which the relationship was based "were fabricated for the express purpose of filing the instant action".
In a statement, DLA said: "This is an entirely baseless lawsuit that has been filed as a tactic to intimidate lawyers from bringing litigation against Facebook.
"DLA Piper, which was not part of this case at its outset or its conclusion, was involved for 78 days. Facebook and Mr. Zuckerberg claim that they were damaged in those 78 days, yet a mere 10 months after DLA Piper withdrew from the case and while the litigation was still pending, Facebook went to market with an initial public offering that valued the company at $100 billion. Today, Facebook is worth $200 billion and Mr. Zuckerberg is among the richest people in the world. We will defend this meritless litigation aggressively and we will prevail."
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