Winklevosses Will Appeal Facebook Lawsuit to Supreme Court

 
 
By Chris Preimesberger  |  Posted 2011-05-16 Email Print this article Print
 
 
 
 
 
 
 

UPDATED: Twins Cameron and Tyler Winklevoss, who contend Facebook founder Mark Zuckerberg stole their idea, apparently intend to keep their litigation alive at the highest court level.

Hours after a federal appeals court on May 16 refused to revisit its April 11 decision ordering two former classmates of Facebook founder Mark Zuckerberg to accept a multimillion-dollar settlement over an intellectual property dispute, yet another legal maneuver came to the fore.

The Los Angeles Times reported late May 16 that Cameron and Tyler Winklevoss now intend to take their case to the U.S. Supreme Court, having exhausted all lower court bids to initiate a new hearing.

The Times said that Winklevoss attorney Jerome Falk, in a written statement, said he plans to pursue two legal issues: the court's decision that a party who is defrauded into entering a settlement agreement cannot challenge the contract for fraud, and the court's decision that statements made in a confidential mediation cannot be used as proof that a party committed securities fraud.

"Settlements should be based on honest dealing, and courts have wisely refused to enforce a settlement obtained by fraudulent means," Falk said.

Facebook could not immediately be reached for comment.

Most observers believed the appellate court decision in San Francisco would have finally buried the case of Winklevoss and Winklevoss vs. Zuckerberg and Facebook. But apparently the case is still quite alive.

The Winklevosses, Harvard University classmates of Zuckerberg, had asked the court in January to reconsider a $65 million legal settlement they signed with Zuckerberg in 2008. The brothers contend that Zuckerberg stole their idea after he was hired by them to program their social networking site, called ConnectU, in 2003.

In the 2008 settlement, the Winklevosses were to receive $20 million in cash and $45 million worth of stock valued at $36 per share in the deal. They later claimed they were misled by Zuckerberg during the settlement negotiations.

Facebook, still a privately held company, was valued last year at more than $55 billion.

At the time of the settlement, Facebook made no admittance that Zuckerberg had stolen the twins' idea in agreeing to end the litigation. In fact, Zuckerberg has consistently maintained that Facebook was his creation.

The lawsuit was so long-term in nature (eight years) that a feature film about it ("The Social Network") has since come to theaters and gone to video.

Last month, a three-judge panel of the 9th U.S. Circuit Court of Appeals in San Francisco upheld the settlement. "At some point, litigation must come to an end. That point has now been reached," the court said in its decision.

On May 16, the same court declined to assign the case to an 11-judge panel for reconsideration. So the twins now are apparently set on continuing the litigation in the highest court in the United States.

 

 
 
 
 
Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on Salesforce.com and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz
 
 
 
 
 
 
 

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