The Law-Firm Brand in general the the brand of several specific law firms could take a beating. Both in the courts of law and of public opinion. That's if Facebook's lawsuit against several law firms and an individual lawyer proves to have merit.
Essentially, the legal blowout is associated with Paul Ceglia's claim that a contract with Mark Zuckerberg entitled him to an ownership stake in Facebook. It turned out that the contract was forged. The law firms which at some time represented Ceglia in this matter include DLA Piper LLP, Milberg LLP, and Lippes, Mathias. Another lawyer who is now a defendant is Paul Argentieri. Here is the coverage by Reed Albergotti in The Wall Street Journal (sub. req.)
The law firms contend that the lawsuit has no merit. Facebook insists that they did know or should have known the documents were forged. What Facebook is requesting are reimbursement for its legal fees and punitive damages.
The question hovering over all this is if the law firms were aware of the deceit, yet pushed forward, hoping to shake down deep-pocket Facebook in a settlement? Facebook has the resources to finance going to the mat on this. After discovery, there could be a trial which everyone from tort reformers to the investment community will watch closely.