Gibson,
Dunn & Crutcher
has a history of ruthless efficiency when it goes on the attack. Just ask the
Ecuadorians suing Chevron for environmental contamination or the Nicaraguans
who tried to hit Dole for using pesticides on its banana plantations. Or you
could ask the plaintiffs lawyers in those cases, some of whom have been left
bruised and bloody by the Gibson blitzkrieg.
Gibson’s
June 2 motion to expedite discovery against an upstate New York wood pellet
salesman named Paul Ceglia, who claims that Mark Zuckerberg signed a 2003
contract granting him 50 percent ownership of the then-inchoate Facebook, is a
classic example of the firm’s style. It’s a powerfully-written document,
replete with sound-bite denunciations of Ceglia and his purported proof. But
it’s also backed by deep forensic analysis of the Ceglia contract and e-mails,
as well as an intensive background check on Ceglia by the Kroll investigative
agency. (Here’s the Reuters
story on the filing.)
There
are some pretty devastating assertions in the Gibson brief. Facebook’s lawyers went
back to Harvard to retrieve Zuckerberg’s e-mails from the university’s servers.
None of the e-mails Ceglia quotes in his amended complaint appear on the
Harvard servers, but 175 other e-mails between Zuckerberg and Ceglia did turn
up. And while Ceglia’s
purported e-mails show him collaborating with and advising Zuckerberg in
the creation of Facebook, the e-mails retrieved
from Harvard offer a very different. In
those exchanges, Ceglia comes across
as cringing and apologetic, unable to afford
to pay Zuckerberg for the coding work he hired Zuckerberg to do.
The
Kroll investigators, meanwhile, found that Ceglia had tangled with law
enforcement several times in Florida, where he allegedly engaged in “a
wide-ranging criminal land scam involving the fraudulent sale of land in New
York and Florida.” That’s in addition to an old drug arrest in Texas and a 2009
arrest by the New York attorney general for allegedly defrauding wood pellet
customers.
"Ceglia,”
the filing said, “is a professional con artist.”
Now,
you might be wondering whether a heretofore anonymous ne’er-do-well who, by his
own admission to Bloomberg last August, unearthed the contract supposedly
granting him ownership of Facebook when he was scrounging through old files
after his 2009 arrest for fraud, really merits the nuclear-bomb treatment he
gets in the June 2 filing. The answer, from Facebook’s perspective, is that he
does because Ceglia is backed by the resources of DLA Piper, one of the
biggest international law firms in the world.
DLA
publicly entered the case on April 11, at the same time Ceglia’s lawyers at the
Buffalo firm Connors & Villardo withdrew. (Name partner Terrence
Connors declined to comment on why his firm exited Ceglia’s case.) That
day, DLA Piper partners Christopher “Kip” Hall, John Allcock, Robert
Brownlie, and Gerard Trippitelli filed Ceglia’s amended complaint in
Buffalo federal district court.
The
amended complaint reinvigorated a case that had slipped from attention after
Facebook succeeded in keeping it in federal court. It cited, for the
first time, the purported e-mails between Ceglia and Zuckerberg. (The e-mails
were quoted in the body of the complaint, but, unlike the contract between
Ceglia and Zuckerberg, printouts were not attached as exhibits.)The DLA lawyers also put forward a revised theory
of the case. Ceglia had previously said he was due 84 percent of Facebook under
his contract with Zuckerberg; in the amended complaint, he asked for only 50 percent, asserting that he ceded the extra
34 percent in his 2003 e-mails with Zuckerberg.
The
newly-revealed e-mails between Ceglia and Zuckerberg got quite a bit of press
attention when DLA filed the amended complaint, as did DLA’s appearance. (The
legal team Ceglia unveiled in the amended complaint also includes former New
York state attorney general Dennis Vacco of Lippes Mathias Wexler
Friedman.)
At
the time, DLA Piper partner Brownlie told
The Wall Street Journal that he had initially been “skeptical of Mr.
Ceglia’s claims,” but after investigating the claims and documents and hiring
an outside expert to “examine the computer filed used to create the contract
and verify when it was first created,” he had gained “absolutely 100 percent
confidence” that Ceglia’s agreement with Zuckerberg is authentic. (Brownlie did
tell the Journal, however, that he had not personally seen the original
contract.) DLA also surely knew of Ceglia’s arrests
on drug and fraud charges, which Gibson’s Snyder has been trumpeting for
months.
But did DLA know that Ceglia’s supposed e-mail exchanges with
Zuckerberg aren’t on Harvard’s servers, even though 175 other e-mails between
them are? Or that, according to Kroll, Ceglia has engaged in document forgery? After Thursday’s
Facebook motion, OTC reached out to DLA partners Hall, Brownlie, Allcock, and
Trippitelli, as well as former state AG Vacco, to ask more questions about the
due diligence they conducted on Ceglia and his evidence before filing the
amended complaint. None of the lawyers responded, but we received an e-mail
from DLA’s public relations agency, Greentarget, on behalf of DLA and Lippes
Mathias.
“Mr.
Ceglia welcomes the opportunity to expedite discovery in this case and
disagrees with the opinions within the [Facebook] filing, which have been made
by those who have not examined the actual contract at issue in this case or any
of the other relevant evidence,” the statement says. “There will be no further
comments at this time.”
For
what it’s worth, OTC is also rooting for expedited discovery. Can’t wait to see
where this one goes.
(Reporting
by Alison Frankel)