Facebook v Winklevoss twins feud comes to an end
Facebook Chief Executive Mark Zuckerberg has won the legal battle against former Harvard classmates who accused him of stealing their idea for Facebook. A three-judge appeals court panel ruled that the Winklevoss twins must accept a cash and stock settlement with Facebook that had been valued at $65 million. The 2008 settlement for $20 million in cash plus 1.25 million shares in Facebook is now estimated to be worth approximately $160 million.
The court in its order said “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. And the courts might have obliged, had the Winklevosses not settled their dispute and signed a release of all claims against Facebook .With the help of a team of lawyers and a financial advisor, they made a deal that appears quite favorable in light of recent market activity (Facebook Deal Raises $1 Billion, Wall St. J., Jan. 22, 2011) . For whatever reason, they now want to back out. Like the district court, we see no basis for allowing them to do so. At some point, litigation must come to an end. That point has now been reached”.
Facebook was represented by E. Joshua Rosenkranz of Orrick, Herrington & Sutcliffe.
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