Skip the navigation
News

Facebook calls ownership contract a 'forgery'

Social network amps up rhetoric in lawsuit over company ownership

By Sharon Gaudin
July 23, 2010 01:20 PM ET

Computerworld - Facebook is going one step further in its verbal battle against the man who says the company's founder and CEO Mark Zuckerberg signed away ownership of 84% of the social networking site seven years ago.

A spokesman for Facebook said in an email to Computerworld Friday morning that the company "strongly" believes any contract that would be produced for the courts would be a forgery.

Questions over who really owns Facebook cropped up after Paul D. Ceglia of Wellsville, N.Y. filed a lawsuit June 30, alleging that he signed a pact with Zuckerberg in 2003 that entitles him to 84% ownership of the company. According to court documents, Ceglia claims he had a written agreement with Zuckerberg to design and build a Web site that eventually turned into the wildly successful site.

He also alleges that he was paid $1,000 for the work and for a 50% stake in the site, along with an extra 1% for every day until the Web site was completed.

Facebook has called the lawsuit "frivolous" all along and has vowed to fight it in court.

Earlier this week, though, in an interview with Diane Sawyer of ABC News, Zuckerberg said he is "quite sure" he didn't sign a contract giving a former Web designer ownership of the company. Zuckerberg, however, didn't say he absolutely did not sign any contract, and stayed just this side of fully rebutting the allegation.

Today's statement seems to have amped up the company's assault on the claim.

"Mark [Zuckerberg] has made it clear that Ceglia's claims are absurd and we strongly suspect the contract is forged," said Andrew Noyes in an email. "However, we have not seen the original (no one has, including the court). Thus, we're focusing on the things that are not open to interpretation and are indisputable. Mark could not have given interest in a company that didn't exist or an idea he had not thought of yet. And, even if he could, the statute of limitations has expired."

An 84% stake in Facebook would turn into a sizable fortune.

Just this week, the company, which has become the dominant social networking site in the world, announced that it has grabbed its 500 millionth user.

While the lawsuit winds its way through the legal system, Ceglia faces other legal challenges.

Late last year, New York Attorney General Andrew Cuomo obtained a temporary restraining order against a western New York wood-pellet fuel company, Allegany Pellets LLC, owned by Ceglia and his wife, Iasia. The company allegedly took more than $200,000 from consumers and then failed to deliver products or refunds.

Sharon Gaudin covers the Internet and Web 2.0, emerging technologies, and desktop and laptop chips for Computerworld. Follow Sharon on Twitter at Twitter @sgaudin or subscribe to Sharon's RSS feed Gaudin RSS. Her e-mail address is sgaudin@computerworld.com.

Read more about Web 2.0 and Web Apps in Computerworld's Web 2.0 and Web Apps Topic Center.



Additional Resources
Forrester Consulting - Optimizing Users and Applications in a Mobile World
WHITE PAPER
Solving application issues over the WAN requires careful consideration. Based on their independent research, Forrester Consulting offers recommendations on how to tackle application performance issues, insufficient bandwidth and the inability to quickly restore users in a disaster.

Read now.

Security KnowledgeVault
WHITE PAPER
Security is not an option. This KnowledgeVault Series offers professional advice how to be proactive in the fight against cybercrimes and multi-layered security threats; how to adopt a holistic approach to protecting and managing data; and how to hire a qualified security assessor. Make security your Number 1 priority.

Read now.

Cut Communications Costs Once and for All
WHITE PAPER
New IP-based communications systems are being deployed by small and midsized businesses at a rapid rate. Learn how these organizations are enabling faster responsiveness, creating better customer experiences, speeding office or mobile interactions, and dramatically reducing existing communications costs.

Read now.

Web 2.0 and Web Apps White Papers
Why Business Ethernet Services?
Everybody's heard the cliché, "the network is your business." But that's not going to help you choose the best wide area networking service...
Overcome Top 7 Admin Challenges of Active Directory
As Active Directory's role in the enterprise has drastically increased, so has the need to secure the data. Gain insight on creating repeatable,...
Insiders Can Ruin Your Company. Take Action.
Did you know that 80 percent of threats to an organization come from the inside? The threat from insiders is often overlooked in...
Top Solutions and Tools to Prevent Devastating Malware
Custom malware frequently goes undetected. According to Forrester Research, the best way to reduce risk of breach is to deploy file integrity monitoring...
Streamline Compliance and Increase ROI
Streamline, simplify, and automate compliance related activities; especially those that impact multiple business units. This white paper from NetIQ, outlines solutions that will...
All Web 2.0 and Web Apps White Papers
Web 2.0 and Web Apps Webcasts
Optimizing Networks for the Cloud
Join guest speaker, Rohit Mehra, IDC Director of Enterprise Communications Infrastructure, to explore current trends, discuss best practices for optimizing Data Center and...
Apps QuickStart Series Part 2: Designing and Deploying SQL Server on VMware vSphere
Download this webcast to learn about the design considerations for virtualizing SQL workloads, performance and scalability information and high-availability options, as well as...
Apps QuickStart Series Part 1: Designing and Deploying Exchange 2010 on VMware vSphere
Download this webcast to learn the virtual hardware design considerations for Exchange 2010, deployment using the building block approach, options for high-availability and...
Customer Spotlight: How IPC The Hospitalist Company Implemented Oracle on VMware
Have you been looking to hear about customer's experiences with the new VMware vCenter Site Recovery Manager product? View this webcast to learn...
Virtualize Business-Critical Applications with Confidence
Virtualizing business-critical applications has become a key focus for organizations as they move along their virtualization journey. With the launch of VMware vSphere®...
All Web 2.0 and Web Apps Webcasts
Newsletter Sign-Up

Receive the latest news test, reviews and trends on your favorite technology topics

Choose a newsletter
  1. View all newsletters | Privacy Policy
IT Jobs