Zuckerberg vs. Winklevoss, Again


The twins want a bigger settlement than originally agreed on.


By: SARAH BAUDER  
Published: January 13th 2011
in Economics » World

Winklevoss Twins

The Winklevoss twins and Facebook Chief Executive Mark Zuckerberg are quarreling in court yet again. On Tuesday, three San Francisco judges in the Ninth Circuit Court of Appeals were a skeptical audience to Cameron and Tyler Winklevoss’ bid to void their 2008 $65 million Facebook settlement. The original settlement, dramatized by last year’s The Social Network, stipulated that the Winklevoss Twins received $20 million in cash and $45 million in Facebook stock, to drop their suit that Zuckerberg stole the idea for Facebook.

 

Zuckerberg and the 29-year-old twins attended Harvard University together. The brothers initially asserted that Zuckerberg deceived them when he agreed to work on their similar company, ConnectU, which Zuckerberg denied. However, they recanted their accusation, agreeing to the settlement, along with ConnectU co-founder Divya Narendra. The twins and Narendra have subsequently argued that they were cheated out of Facebook stock.

 

In the new lawsuit, the Winklevoss twins argue that had Facebook disclosed an internal corporate valuation, they would have received more shares in the 2008 settlement. Lawyers for the twins argued that the twins were duped; Facebook’s attorney E. Mark Rosenkranz disagreed.

 

"It's called due diligence because it's supposed to be diligent," Rosenkranz stated. "The ConnectU founders struck a deal that made them very, very rich and it is making them richer by the day," said Rosenkranz. "At some point it is time to move on."

 

Facebook Inc., the world’s leading social network, was recently valued at approximately $50 billion US.



Related articles: (Facebook, Zuckerberg, Winklevoss, Lawsuit)




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