Facebook sues DLA Piper for ‘fraudulent lawsuit’

Forget Hurricane Gonzalo. A bigger storm is brewing in the States between two giants. One side is tech titan Facebook; on the other, legal behemoth DLA Piper.

Facebook has launched a lawsuit in New York claiming that DLA Piper, along with a number of other firms, conspired to file a “fraudulent lawsuit” based on “fabricated evidence”  (see story).

DLA Piper, along with US firms Milberg, Paul Argentieri & Associates and Lippes Mathias Wesler Friedman variously represented internet entrepreneur Paul Ceglia in 2010.

DLA Piper began advising Ceglia in 2010. He claimed he had been promised a stake in Facebook on the basis of a 2003 contract, which was later indicted as a fraudulent document.

Facebook is now alleging that DLA Piper, which later withdrew from the case, “publicly staked its reputation on the veracity of Ceglia’s allegations”.

DLA Piper is not taking this lying down. Quite the contrary: it’s calling out the move as “a tactic to intimidate lawyers from bringing litigation against Facebook” and calls the suit “entirely baseless”.

Stormy times ahead.

Also on TheLawyer.com:

 
Featured Briefings
Employment – Gateley: EU obesity ruling will mean extra furniture bills for firms
Immigration – Wragge Lawrence Graham & Co: Changes to the UK Tier 1 (Investor) Visa route
Litigation – Ince & Co: Court of appeal authoritatively confirms fraudulent devices rule
Personal tax – Winckworth Sherwood: Duties of private trustees
Banking – Wragge Lawrence Graham & Co: Consumer credit affordability assessment under CONC — are you ready?