Venable Escapes Suit Over $11M Facebook IPO Fraud

Law360, Los Angeles (June 26, 2013, 7:15 PM EDT) -- A California federal judge on Wednesday tossed a lawsuit brought by ESG Capital Partners LP accusing Venable LLP of helping a known con man defraud ESG of $11.25 million by falsely promising Facebook shares before the company’s initial public offering, finding ESG failed to properly state its claims.

The decision comes nearly a month after Venable and attorney and co-defendant David Meyer moved to dismiss the legal malpractice suit, arguing that the complaint lacks specific factual allegations. The law firm said that the investment manager has...
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