Facebook Inc (NASDAQ:FB) Efforts To Teach Lawyers A Lesson On Taking Dubious Lawsuit

Quite often, companies find themselves in the legal wrangle. It was partly because of the interpretation of the law by the lawyers to provide sleepless nights to the promoters or management of such companies. Now, it appears that lawyers seem to be in the receiving end from corporate. Facebook Inc (NASDAQ:FB) decided to take on the lawyers, who have pursued a dubious lawsuit filed by Paul Ceglia against the company.

Sues Several Lawyers

The social networking company’s CEO, Mark Zuckerberg, has sued the lawyers, who represented Ceglia, for seeking 50% claim in Facebook stake through a fraudulent lawsuit, Reuters reported. The company spared Ceglia in the current lawsuit but targeted lawyer firms such as Paul Argentieri, which was original lawyer of Ceglia. Aside from this, the Facebook Inc (NASDAQ:FB) also included other lawyer firms Lippes Mathias Wexler Friedman, Milberg LLP and a former attorney general of New York, Dennis Vacco.

In all, there were thirteen defendants including the world’s biggest law firms, DLA Piper. The lawyer company retorted by terming the lawsuit as merit-less and charged the social networking company of intimidating lawyers to abstain from suing the company. DLA Piper said that it would defend itself aggressively and would prevail.

In the lawsuit filed against the lawyers, Facebook Inc (NASDAQ:FB) sought unspecified damages from them for harming the company’s reputation, as well as, its business. The company blamed lawyers for preventing it from tripling its business through alleged misconduct and punitive damages.

Facebook Charges

The social networking company said that lawyers of Ceglia either knew or should have come to know that the lawsuit they were pursuing was a fraud since it was based on forged documents and unbelievable story. Instead, the lawyers proceeded with the suit with a clear intention of extorting an unwarranted and a profitable settlement.

To support its charges, Facebook Inc (NASDAQ:FB) said that Kasowitz Benson Torres & Friedman, a lawyer firm for Ceglia, found proof of fraud and alerted other lawyers, who preferred to pursue the case. The company also pointed out that Kasowitz lawyer firm has agreed not to disclose the misconduct report of Ceglia at the request of another lawyer firm of Ceglia.

Original Case

In his lawsuit filed in June 2010, Ceglia claimed that he signed a deal with Zuckerberg in April 2003. As part of it, he was entitled to 84% stake in Facebook. Ceglia provided alleged emails to support his claim. However, the court dismissed the civil case seven months back. Ceglia was also earlier charged with criminal wire and mail fraud for forging documents to support his claim. It will come up for hearing next year May.

About the Author

Coper graduated from the University of Chicagi with majors in political science and journalism.

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