Facebook settlement upheld

April 12, 2011 • Top Stories

Facebook welcomes the ruling in favor of the Winkelvoss settlement (Image: file photo)

Mark Zuckerberg’s six year legal battle against former Harvard University schoolmates might finally be over, the Associated Press (AP) reports. The bitter dispute was dramatized in the Oscar-nominated film, “The Social Network.”

The 9th US Circuit Court of Appeals ruled Monday that Tyler and Cameron Winklevoss can’t undo their settlement over creation of the social networking site. The three-judge panel ruled unanimously that the twin brothers “were savvy enough to understand what they were agreeing to when they signed the agreement in 2008,” the AP article states.

The Winklevoss twins, together with a third classmate Divya Narendra, sued Mark Zuckerberg on the grounds that Zuckerberg stole their idea when he created Facebook and further misled them about the value of the popular social networking website when they agreed to settle their lawsuit.

The deal called for a $20 million cash payment and a partial ownership of Facebook, the AP reports. Narendra was not a party to the lawsuit to try to reverse the settlement.

Monday’s ruling upholds a lower court decision enforcing the settlement, which is now worth more than $160 million. The twins alleged they were misled into believing the company was worth $35.90 a share because of an investment by Microsoft Corp. But they argued that the company later valued Facebook at $8.88 for tax purposes. The twins argue they would have demanded more stock in the company based on the lower valuation.

“At some point, litigation must come to an end,” chief justice Alex Kozinksi wrote for the unanimous three-judge panel “That point has now been reached.”

Source:  IBN Live

Comments are closed.

« »

Read previous post:
Intelsat New Dawn Satellite to launch on 22 April

Intelsat S.A. announced today that the launch of Intelsat New Dawn has been rescheduled to Friday, April 22 at 5:37...