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Horvitz & Levy LLP successfully represented Jimmy Li as respondent in an appeal by law firm Simpson Thacher & Bartlett LLP from the denial of its motion to strike Li’s malicious prosecution case against the firm. Li served as an outside director of Simpson Thacher’s former client, PrediWave Corporation, and initiated an investigation of PrediWave CEO Tony Qu based on suspicions that Qu was looting the company. PrediWave (with Simpson Thacher as its counsel) then sued Li for breach of fiduciary duty and related claims. Simpson Thacher later discovered that Qu had lied regarding several issues about his management of PrediWave that were material to Li’s investigation, but the suit against Li was not dropped until several years later. Li subsequently sued Simpson Thacher, which unsuccessfully moved to strike the lawsuit under Caifornia’s anti-SLAPP law. Simpson Thacher then appealed the denial of its anti-SLAPP motion.

The California Court of Appeal (Sixth Appellate District) affirmed, holding that dismissal was not appropriate because Li had presented sufficient evidence to show a probability of prevailing on each element of his malicious prosecution claim. Simpson Thacher’s knowledge of Qu’s dishonesty established that Simpson Thacher lacked probable cause to continue prosecuting the underlying action against Li.