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Friday, 27 May 2011 - Facebook, Zuckerberg say ownership suit a fraud |
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    Edition: U.S. Article Comments (0) Video Follow Reuters Facebook Twitter RSS YouTube Read Joplin tornado chaos leaves hundreds still missing | 26 May 2011 Boyfriend says Casey Anthony never told him of abuse 26 May 2011 Clinton in Pakistan, presses for more to quash 1:06am EDT Hundreds still missing in tornado-hit Missouri city 26 May 2011 EBay and PayPal sue Google over trade secrets 26 May 2011 Discussed 128 As hours tick by, ”Judgment Day” looks a dud 105 Broadcaster silent as Judgment Day hours tick by 94 Obama departs for Europe trip, explores Irish roots Watched Scientists revive ancient spider in stunning 3D detail Tue, May 24 2011 Hundreds missing after tornado 2:40am EDT Paying by phone not credit card Thu, May 26 2011 Facebook, Zuckerberg say ownership suit a "fraud" Tweet Share this By Jonathan Stempel CHICAGO (Reuters) - Calling the case a "brazen and outrageous fraud," Facebook founder Mark Zuckerberg urged a federal court on Thursday to dismiss a lawsuit by a New York man claiming he owns a huge stake in the social... Email Print Related News Facebook tabs former Bush officials for DC office Thu, May 26 2011 Analysis & Opinion Tech wrap: Twitter swallows TweetDeck The Rajaratnam Verdict: Tip of the Iceberg – ANALYSIS Related Topics Technology » Media » Facebook » Related Video Zuckerberg: Facebook kids & Arab spring Thu, May 26 2011 By Jonathan Stempel CHICAGO | Thu May 26, 2011 9:28pm EDT CHICAGO (Reuters) - Calling the case a "brazen and outrageous fraud," Facebook founder Mark Zuckerberg urged a federal court on Thursday to dismiss a lawsuit by a New York man claiming he owns a huge stake in the social networking website. In a filing with the U.S. District Court in Buffalo, New York, Facebook and Zuckerberg said the lawsuit by Paul Ceglia is based on a "doctored contract and fabricated evidence." They also called the plaintiff "an inveterate scam artist whose misconduct extends across decades and borders." Ceglia, a wood pellet salesman from Wellsville, New York, has contended that he contracted in 2003 for 50 percent of Zuckerberg's interest in what became Facebook. Facebook is privately held, but analysts have said it could be worth $70 billion should it go public. Forbes magazine in March estimated Zuckerberg's net worth at $13.5 billion. Ceglia originally sued last July, saying he had contracted with Zuckerberg for an 84 percent Facebook stake. In an amended complaint Ceglia outlined what he called emails between himself and Zuckerberg to support his case. In their response, Facebook and Zuckerberg said they "specifically deny any liability" to Ceglia, and called the lawsuit "a brazen and outrageous fraud on the court." They also questioned why Ceglia waited seven years to sue, saying he had long been "utterly silent" as Facebook "grew into one of the world's best-known companies." A lawyer representing Ceglia declined immediate comment. According to published reports, Ceglia pleaded guilty in 1997 to possession of hallucinogenic mushrooms in Texas. In 2009, he was accused of fraud and had his business shut down. In a separate case, Cameron and Tyler Winklevoss are appealing to the U.S. Supreme Court a court ruling that upheld their $65 million cash-and-stock settlement with Facebook. The twin brothers have accused Facebook and Zuckerberg of stealing their idea for the website. The battle between the Winklevoss twins and Zuckerberg was dramatized in the 2010 Oscar-nominated movie "The Social Network". (Reporting by Jonathan Stempel in Chicago; Editing by Tim Dobbyn, Phil Berlowitz) Technology Media Facebook Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback   Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Super Lawyers Attorney Rating Service Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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