Facebook Sues DLA Piper over Ceglia Case

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Summary: Facebook and its CEO Mark Zuckerberg have sued DLA Piper LLP, Paul Argentieri & Associates, Lippes Mathias Wexler Friedman LLP , and Milberg LLP , including attorneys belonging to these law firms who represented Paul Ceglia in his stunning claim to 50% ownership of Facebook, based on documents which have since been proved to be false and forged before federal courts.

Facebook’s complaint accuses the law firms and lawyers of collusion with intent to deceive a court and malicious prosecution. Facebook and Zuckerberg are represented by Moskowitz & Book LLP. The complaint has been brought for violation of New York Judiciary Law Section 487 in the Supreme Court of the State of New York.

  

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Facebook opens its complaint with the allegation that “The Defendant lawyers and their client, Paul D. Ceglia, conspired to file and prosecute a fraudulent lawsuit against Facebook and its founder and CEO Mark Zuckerberg based on fabricated evidence, for the purpose of extorting a lucrative and unwarranted settlement.”

The complaint further stated that “The lawyers representing Ceglia knew or should have known that the lawsuit was a fraud – it was brought by a convicted felon with a history of fraudulent scams, and it was based on an implausible story and obviously forged documents.”

Facebook points out, “In fact, Defendant’s own co-counsel discovered the fraud, informed the other lawyers, and withdrew. Despite all this, Defendants vigorously pursued the case in state and federal courts and in the media. Ultimately, the federal court hearing the case dismissed it as a fraud and a federal grand jury indicted Ceglia for the same fraud.”

So, Facebook thinks it is now its payback time for the lawyers and law firms who represented Ceglia.

The problem is that courts and lawyers cannot move based on assumptions and presumptions, and until the documents and story of Ceglia was proved at court to be fraud and forgery, he was held innocent under law, and there was nothing for the law firms or lawyers to legally assume otherwise. Unless, of course, Facebook can prove that the law firms or lawyers were conclusively aware of the forgery and had prior knowledge of the same before the court reached its conclusion.

Proving collusion backed by mens rea is a difficult job. And there’s quite a high chance that ultimately Facebook will have to settle things from its own side to appease some law firms it’s suing today.