Facebook Sues Law Firm for Contributing to Fraud Posted on 27 Oct 16:00 , 0 comments

In a lawsuit filed last week Monday, Facebook claims DLA Piper, and three other law firms, “conspired to file and prosecute a fraudulent lawsuit … based on fabricated evidence, for the purpose of extorting a lucrative and unwarranted settlement.”  This new suit stems from a case in 2010, when Paul Ceglia filed suit, claiming a majority ownership interest in Facebook Inc. based on documentation since determined by a federal court to have been faked. DLA Piper, and the other firms represented Ceglia in the prior litigation.

DLA Piper says Facebook’s claims are without merit and merely a tactic to intimidate lawyers from bringing litigation against Facebook.  DLA Piper further claims it was only involved in the case for a few months, however Facebook points to the fact that it stayed in the litigation after Kasowitz, Benson, Torres & Friedman discovered that the document on which Ceglia’s suit was based was a fraud and withdrew.

Facebook seeks reimbursement of the legal fees expended in defending the Ceglia litigation, as well as unspecified punitive damages.  A criminal case against Ceglia is ongoing.