DLA Piper, one of the world’s largest law firms, is once again embroiled in a legal malpractice case seeking $180 million in damages. The complication follows a recent Second Circuit decision that vacated a lower court’s dismissal of the lawsuit filed by Chinese software company Link Motion. The original federal complaint was dismissed by Judge Victor Marrero as time-barred, but the Second Circuit ruled that the case should be litigated in New York state court rather than dismissing it outright without commenting on the timing.
The lawsuit dates back to 2018, stemming from a shareholder derivative action where it was alleged that Link Motion and three of its executives were divesting the company of valuable assets, transferring them to unknown third parties. Link Motion did not respond to the initial lawsuit and agreed to be placed into receivership. In its legal malpractice case, the company claims that DLA Piper’s inadequate defense cost it $180 million in damages. Details from Reuters highlight that DLA Piper was permitted by a Manhattan judge to withdraw as Link Motion’s counsel four months post-filing, citing non-payment and unresponsiveness from Link Motion.
Commenting on the appellate court’s decision, Michael Maloney, the attorney for Link Motion, stated, “We look forward to litigating this case in state court.” On the other hand, DLA Piper’s lawyer, Kevin Rosen of Gibson, Dunn, maintains that the substantive allegations are unfounded, calling them “frivolous and sanctionable.” The ongoing litigation is poised to unfold further as it transitions to state court.
For more information, see the full article on Above the Law.