NEW YORK—In a significant legal victory, prestigious global law firm DLA Piper successfully thwarted a $180 million legal malpractice lawsuit leveled against them by their former client, Link Motion Inc. The case, dismissed by U.S. District Judge Victor Marrero in Manhattan, was deemed untimely due to the expiration of the three-year statute of limitations on Link Motion’s claims.
The lawsuit was rooted in a shareholder dispute dating back to 2018, which had forced Link Motion into receivership. The initial lawsuit, filed by the shareholders, alleged that Link Motion and three of its executives had illicitly transferred valuable company assets to undisclosed third parties. Though Link Motion had never responded to the lawsuit, nor contested the imposition of receivership, the company later argued in its legal malpractice suit that DLA Piper failed to mount defenses against the shareholder claims, leading to damages estimated at $180 million.
DLA Piper subsequently withdrew as Link Motion’s counsel in the shareholder case, citing non-payment of legal fees and unresponsiveness from the client. Judge Marrero, in his ruling, highlighted that Link Motion’s primary contention revolved around the allegedly wrongful appointment of the receiver, which he found to be entirely baseless.
Kevin Rosen, partner at Gibson, Dunn & Crutcher and representative for DLA Piper, expressed great satisfaction with the dismissal of what he deemed a “meritless complaint.” Meanwhile, Michael Maloney, attorney for Link Motion, asserted that the ruling did not negate the validity of their claim against DLA Piper, although Judge Marrero explicitly stated that he did not address the sufficiency of Link Motion’s pleadings.
DLA Piper’s resounding victory in this high-stakes lawsuit serves as a testament to their legal prowess and strategic acumen. The case, titled Link Motion Inc v. DLA Piper LLP (US), was heard in the U.S. District Court for the Southern District of New York.
