Facebook Beats Twins, Again2011-04-12 11:17:00
Facebook has yet again emerged victorious in a legal battle with Winklevoss twins Tyler and Cameron, who now claim Mark Zuckerberg suckered them on the settlement deal.
The deal was made after Facebook founder Mark Zuckerberg was accused by the Winklevosses of stealing their idea for a social networking website aimed at university students.
The brothers claim Zuckerberg was approached to finish the coding of the website, but instead of holding up his end of the deal Zuckerberg took the idea and launched his own website.
A settlement between the Winklevoss twins and Mark Zuckerberg was subsequently reached that saw Tyler and Cameron off with $20-million in cash and $45-million worth of stock valued at $36 a share, but the twins have now disputed the decision claiming that it was not disclosed during negotiations that Facebook values its stock internally at $9.
According to the twins they would have received far more shares had this fact previously been disclosed.
But according to the 9th US Circuit Court of Appeals: “The Winklevosses are not the first parties bested by a competitor who then seek to gain through litigation what they were unable to achieve in the marketplace.
“At some point, litigation must come to an end. That point has now been reached,” said the court.
The court added that the initial settlement had been agreed upon under the supervision of lawyers and a financial advisor and the outcome has not been unfavourable for the twins.
“For whatever reason, they now want to back out," the court said.
“Like the district court, we see no basis for allowing them to do so.”
Jerome Falk, attorney for the Winklevosses said his legal team would file a petition for a rehearing, where a panel of judges would reconsider the decision.