Winklevoss Twins Dropped Lawsuit Against Facebook

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Just few days back, we have featured a story on how Mark Zuckerberg, CEO (Facebook) built Facebook based on stolen idea and how a lawsuit was fined against Facebook by Mark’s three classmates. As I mentioned that ultimately that litigation was settled with court ruling stating $65 M to be paid to Winklevoss Twins – Tyler and Cameron and their third partner Divya Narendra. The famous 2010 Hollywood block buster The Social Network was based on the same true story. However, subsequently, Winklevoss twins had refused to accept that settlement and accused Facebook and Mark Zuckerberg for unfair valuation of Facebook share at the time of settlement. They were supposed to get $20 M in cash and $45 M in the form of Facebook stocks. This deal was settled sometime in 2008. In the latest further development today, Winklevoss brothers have decided not to pursue the case any longer and instead accept the earlier settlement of $65 M.

winklevoss-twins-dropped-lawsuit-against-facebook Image: Reuters

Tyler and Cameron have not disclosed any specific reasons for their decision to stop further litigation against Facebook. However, it may not be that hard to guess though. The Facebook shares valuation have grown many folds since 2008 when the deal was settled with Winklevoss brothers. Hence, the $45 M worth of stocks would be now $150M at least. So, the deal which was settled at $65M in 2008 is now worth around $200M with total Facebook value close to $100 Billion.

Facebook reacted to this news as – “We’ve considered this case closed for a long time, and we’re pleased to see the other party now agrees,”

However, still, this may be no reason for Mark Zuckerberg to sit and relax in piece as another major lawsuit filed by  Paul Ceglia, American businessman is still underway. Reportedly, Paul who claimed of 84% ownership of Facebook as per his contract with Mark in 2003, has passed the lie detector test.

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