Venable Tries To Ax Suit Over $11M Facebook IPO Fraud

Law360, New York (May 7, 2013, 3:19 PM EDT) -- Venable LLP moved in California federal court Monday to dismiss a securities legal malpractice suit by investment manager ESG Capital Partners LP over an alleged $11.2 million fraud related to Facebook Inc.'s initial public offering, claiming ESG's claims are time-barred and short on facts.

The law firm also said that ESG cannot press its negligence claim over a scheme by alleged fraudster Troy Stratos to bilk potential Facebook IPO investors out of their funds because ESG managing agent Timothy Burns was part of the scheme....
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