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Federal Appeals Court Revives $180 Million Malpractice Lawsuit Against DLA Piper
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A federal appeals court has breathed new life into a $180 million legal malpractice lawsuit against the global law firm DLA Piper. The U.S. Court of Appeals for the 2nd Circuit determined on Monday that the lawsuit should be heard in New York state court rather than in federal court.

Background of the Case

This decision overturns a May 2023 ruling by a federal judge who dismissed the allegations brought by Chinese software company Link Motion because they were filed too late. The appellate court’s ruling did not determine whether the lawsuit was time-barred, leaving that decision to be made by a state judge.

Parties’ Responses

Michael Maloney, an attorney representing Link Motion, expressed optimism about the case’s future proceedings in state court. Meanwhile, DLA Piper and its legal team at Gibson, Dunn & Crutcher have not provided any comments in response to the recent development. The law firm has consistently denied the allegations made by Link Motion.

  
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Allegations Against DLA Piper

The allegations stem from claims that DLA Piper failed to adequately defend Link Motion in a shareholder lawsuit, which subsequently led to the company’s receivership. The 2018 shareholder lawsuit accused Link Motion and three of its executives of transferring valuable company assets to unidentified third parties. When Link Motion did not respond to the lawsuit, it consented to be placed into receivership.

Legal Malpractice Claims

Link Motion contends that DLA Piper’s failure to raise defenses against the shareholder’s claims resulted in $180 million in damages. DLA Piper, on the other hand, obtained permission from a Manhattan judge to withdraw as Link Motion’s counsel four months after the shareholder lawsuit was filed, citing non-payment of legal fees and lack of responsiveness from Link Motion.

Next Steps

The case, titled Link Motion Inc v. DLA Piper LLP (US), is now set to be heard in the New York state court. This decision marks a significant shift in the proceedings and opens a new chapter in the legal battle between Link Motion and DLA Piper.

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Case Reference: Link Motion Inc v. DLA Piper LLP (US), U.S. Court of Appeals for the 2nd Circuit, No. 23-944

Attorneys for Link Motion: Rosanne Felicello and Michael Maloney of Felicello Law



Attorneys for DLA Piper: Nancy Hart, Katherine Meeks, William Moccia, Kevin Rosen, and Peter Wade of Gibson, Dunn & Crutcher




 

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