Is Facebook in Hot Water... Again?

Posted on Tuesday, July 13, 2010 at 11:49 AM

FacebookIn an odd twist, Facebook's assets are frozen as it fends off what seems to be a frivolous lawsuit in New York. There, an order for a case filed in Allegany County state court by Paul Ceglia claims that in 2003 he paid Facebook founder Mark Zuckerberg $1,000 to build a website "designed to offer the students of Harvard university access to a wesite [sic] similar to a live functioning yearbook with the working title of 'The Face Book.'" For that meager $1,000 investment, Ceglia was to receive a 50% stake in the site. Now he's looking to get 84% ownership of Facebook which many investors believe is worth as much as $15 billion (USD).

Judge Thomas Brown has issued a restraining order preventing Facebook from performing any asset sales. Of course Facebook vehemently opposes any such allegations as they continue to fight this in court. It's important to note that this isn't the first time Zuckerberg has been accused of stealing the idea for Facebook. ConnectU has accused Zuckerberg in the past of stealing the source code which he has built his empire upon. And while this case in New York isn't the first it's completely within reason to believe it won't be the last.

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