Facebook Inc. won a court decision enforcing the settlement of a lawsuit claiming company founder Mark Zuckerberg stole the idea for what became the world’s largest social-networking website.
A three-judge panel of the U.S. Court of Appeals in San Francisco today ruled unanimously that the agreement was “valid and enforceable,” noting that the settlement released Facebook from all claims.
The court rejected claims of Zuckerberg’s former Harvard University classmates, twins Cameron and Tyler Winklevoss, who argued the 2008 agreement should be voided because closely held Facebook didn’t disclose an accurate valuation of its shares before they agreed to settle for $65 million in stock and cash.
That year, a lower court ruled the accord was binding.
“With the help of a team of lawyers and a financial adviser, they made a deal that appears quite favorable in light of recent market activity,” the court said, noting that Palo Alto, California-based Facebook is now valued at $50 billion, three times what the Vinklevosses thought at mediation.
“For whatever reason they now want to back out,”
according to the court ruling today. “Like the district court, we see no basis for allowing them to do so. At some point, litigation must come to an end. That point has now been reached.”
Jerome Falk, an attorney for the Winklevoss brothers, who founded ConnectU Inc., didn’t immediately return a phone message seeking comment.
Jonathan Thaw, a Facebook spokesman, didn’t immediately return a voice-mail message seeking comment.
The case is The Facebook Inc. v. ConnectU Inc., 08-16745, 9th U.S. Circuit Court of Appeals (San Francisco).
Blogged by Belal K. Faruki CEO, Neotick, Inc
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