Paul Ceglia—who claims that an old contract with Mark Zuckerberg entitles him to half of Facebook—has failed to have Facebook's counsel at Gibson Dunn disqualified because of a supposed conflict of interest. On Thursday a judge not only found the disqualification motion to be frivolous, but also indicated that he will impose sanctions on Ceglia's lawyer for filing it. Perhaps more importantly, the judge ordered Ceglia to produce a document that, according to Gibson Dunn, proves definitively that he's a fraud.

Months after the Federal Housing Finance Agency filed a batch of suits against the banks that sold allegedly flawed mortgage-backed securities to Fannie Mae and Freddie Mac, both sides are still arguing over how to coordinate the litigation. Several defendants want the FHFA's suit against Ally Financial to be a test case, but on Monday the agency recommended that its claim against JPMorgan be put on the fast track instead.

The defense winning streak we told you about last week continues, but one plaintiffs lawyer told us he'll keep trying smoker suits. "If we win one out of ten, we're doing okay," he said. "And we'll win one out of ten."

A New York appellate court threw out claims that Bank of New York Mellon negligently signed off on Basell's disastrous 2007 leveraged buyout of Lyondell Chemical Co., costing Basell noteholders almost $1 billion.

Libyan leader Muammar Qaddafi originally planned to stay in a 25-room New Jersey mansion owned by the Libyan government during the United Nations General Assembly later this month. But even though protests by New Jersey locals led Qaddafi to change his plans, Englewood residents have launched a court fight to stop renovation work on the five-acre estate.