DLA Piper Prevails in $180 Million Legal Malpractice Lawsuit Due to Statute of Limitations

A major victory was secured by global law firm DLA Piper as a federal judge dismissed a $180 million legal malpractice lawsuit brought against the firm by its former client, Link Motion Inc. The ruling was based on the judge’s determination that Link Motion had filed the lawsuit after the expiration of the three-year statute of limitations.

U.S. District Judge Victor Marrero, presiding over the case in Manhattan, concluded that the statute of limitations on Link Motion’s claims had expired in January 2022, which was eight months prior to the Chinese software company’s filing of the lawsuit. This dismissal dealt a significant blow to Link Motion’s allegations, which originated from a 2018 shareholder lawsuit that led to the company being placed under receivership. The original shareholder lawsuit asserted that Link Motion and three of its executives had wrongfully transferred valuable assets to unidentified third parties.

While Link Motion had not responded to the shareholder lawsuit and had agreed to the receivership, it subsequently argued in the legal malpractice lawsuit that DLA Piper could have raised defenses against the shareholder claims, estimating damages at $180 million. DLA Piper withdrew as Link Motion’s counsel in the shareholder case four months after its initiation, citing the company’s inability to pay legal fees and lack of responsiveness.

In his ruling, Judge Marrero emphasized that Link Motion’s primary contention was that the appointment of the receiver had been unjustified. However, DLA Piper’s attorney, Kevin Rosen of Gibson, Dunn & Crutcher, highlighted the judge’s assertion that this claim lacked merit.

Responding to the ruling, Michael Maloney, an attorney representing Link Motion, expressed that Judge Marrero’s decision did not invalidate the merits of their claim against DLA Piper. Notably, the judge himself stated that his ruling did not address the sufficiency of Link Motion’s pleadings.

This legal battle, identified as Link Motion Inc v. DLA Piper LLP (US), took place in the U.S. District Court for the Southern District of New York. DLA Piper was represented by Nancy Hart of Gibson, Dunn & Crutcher, while Link Motion was represented by Michael Maloney, Rosanne Felicello, and Kristie Blase of Felicello Law.

DLA Piper’s successful defense in this high-stakes lawsuit has provided a resounding victory for the prominent law firm, further solidifying its reputation in the legal industry.

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