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Pattaya Daily News

13 July 2010 :: 15:07:49 pm 30665

Facebook Assets Frozen over New Ownership Battle

The assets of social networking giant “Facebook” have been frozen via a state court order in the US. The order was issued in response to a lawsuit filed by a New York man claiming he legitimately owns an 84% stake in the company.
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United States, the 12th of July 2010: New Yorker, Mr. Paul D Ceglia, claims that he and Facebook CEO Mark Zuckerberg signed a contract whereby Mr. Ceglia designed and developed the website for and initial 50% stake and US$1,000. He also claims a clause in the contract that gives him an additional 34% percent stake.

Mr. Ceglia revealed that the contract was signed in April of 2003 when the website now known as “Facebook” was referred to as “The Page Book” or “The Face Book”. The suit was filed by Mr. Ceglia on the 30th of June and won a state court order temporarily restricting Facebook from disposing of its assets.

The case has since been transferred to the federal court in Buffalo by Facebook, who are arguing that the suit is frivolous and that its origin is so long ago that it is barred by the Stature of Limitations, which is 6-years in New York.

Mr. Ceglia’s case appears to be doubtful, with several books and a film depicting Mr. Zuckerberg for having started work on the site in September of 2003, while the domain name “thefacebook.com” was not even registered until January of 2004.

Mr. Zuckerberg currently owns a 24% stake in Facebook and is the company’s CEO and president. The website is widely known to have been founded by Zuckerberg and fellow Harvard University students Dustin Moskovitz, Eduardo Saverin, and Chris Hughes. Zuckerberg’s current net worth is estimated at US$4 billion.

In yet more controversy surrounding the lawsuit, Mr. Ceglia is no stranger to the court system, currently in the workings of case where he is alleged to have defrauded customers of his “wood fuel pellet” company in 2009.

Reporter : John Weston   Photo : Internet   Category : World News

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