NEWS

Facebook Lawsuit for Majority Ownership

Facebook's lawyers are preparing to fight a complaint by Paul Ceglia that a seven-year-old contract he signed with Mark Zuckerberg, Facebook's founder, entitles him to 84 per cent of the company

2010/07/21 11:42 AM

By: gop

Facebook, and its founder Mark Zuckerberg has been in the news a whole lot quite recently for the good, and the bad.

What has been good for Facebook is that it has recently celebrated its 500 millionth user. Facebook is a social networking site which allows its users to share photos, status updates with friends, and acquaintances.

The bad news is that Facebook is facing possibly the largest lawsuit of its existence. In a recent article on the Huffington post, Facebook is being sued by Complaint Paul Ceglia who might be in possession of a 7-year-old contract he signed with Facebook founder Mark Zuckerberg for software development which he might be claiming entitles him to 84 percent of the company.

It is claimed that Paul Ceglia and Mark Zuckerberg met when Zuckerberg, then a Harvard University freshman, responded to an ad Ceglia had posted on Craigslist looking for someone to develop software for a street-mapping database he was creating.

Zuckerberg while working for Ceglia, allegedly accepted another $1,000 to help in pursuing his own project called "The Face Book". This is where things will make one wince, as to how the networking between these two panned out.

It is further alleged that a condition was placed on the $1, 000 that Ceglia would own a 50 percent interest in the software and business if it expanded. The percentage grew to 84 percent based on a clause that added a percentage point for each day the project went past its Jan. 1, 2004, due date.

Some believe this case might get thrown out of court and might depend based on whether "The Face Book", and Facebook are seen as the same entity. Persons will be eagerly awaiting the outcome of this case.

Facebook is a social networking website launched in February 2004 that is operated and privately owned by Facebook, Inc.

The Facebook website's membership was initially limited by the founders to Harvard students, but was expanded to other colleges, and Universities, and later the general public. Its current membership is about half a billion users

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