Printed with joliprint F Facebook co-founder Saverin was forced out, sued about Eduardo Saverin and the Winklevoss twins. seenAnyonehas who o ht xcl hpee a Hrad n 2003 2004?andWhyhave many people soclaimed in an Harvard at happened exactly what So a messy affair. this week glia’slawsuitoutlandish, hasas it but 50% of Facebook he and Zuckerberg signed a contract giving Ceglia than the movie mentioned. Last year, Ceglia claimed there’sButmoretoFacebook’s legacylawsuitsof hard to rescind it in court. was also settled, though the twins have been trying Facebook.com”instead, the twins sued. That case them, but when Mark Zuckerberg launched “The bergtoHarvard-basedbuilda socialnetwork for Tyler and Cameron Winklevoss contracted Zucker Facebook and settled for a 5% stake of the company. History Explained Facebook’s Complicated Ownership Paul Ceglia. get more complicated, thanks to a man named acebook’stangledfoundingaboutto story is with evidence that promises to make this . Most legal experts dismissed Ce The SocialNetworkThe http://mashable.com/2011/04/13/facebooks-complicated-ownership-history-explained/ resurfaced knows - - - plicated ownership history. To answer that, we need to explore Facebook’s com and does he actually have a case? ownership stake in Facebook? Who is Paul Ceglia, and to figure out a way to make money. verin to take care of the paperwork, to get funding According to an internship with Lehman Brothers in New York. place in Palo Alto and started coding. Saverin had that they had to move to Silicon Valley. decided Moskovitz, They got a Dustin co-founder, another WhenFacebook took off in2004, Zuckerberg and company. to run the site. In return, he’d get about 30% of the tner and to put down $15,000 for the servers com.needed He asked Saverin to become his business par approached Saverin (a junior) about TheFacebook. 2003,Zuckerberg (thensophomorea atHarvard) Business Insider Eduardo Saverin , Zuckerberg asked Sa Until 2009 and a lawsuit settlement a took co-founder knowledged as a ac even wasn’t are the basics. In the case, but here pute the details dis- of sides Both pen. to make that hap April 13, 2011 Saverin Ben Parr It . Page 1 - - - - - Printed with joliprint essentially kept him quiet since. billion today) and signed a non-disclosure that has got about 5% of the company (worth more than sued$2.5 Facebook. The matter was soon settled. Saverin As detailed in onward. short order. His equity was diluted from that point stake in the company from 30% to less than 10% in Peter Thiel. Zuckerberg was able to reduce Saverin’s secured a $500,000 investment by PayPal co-founder entrepreneurtakenby Parker, Sean quicklywho sign off on the paperwork. Eventually, his role wasBut Saverin was slow to make decisions and slow to hi nw rjc, avrCneto, social a HarvardConnection, project, new their tner Divya Narendra approached Zuckerberg about In 2003, the Winklevosses and their business par klevoss twins. Win the of ridget toZuckerberg seem can’t just Facebook’s Complicated Ownership History Explained Tyler and Cameron Winklevoss The Social Network , Saverin eventually http://mashable.com/2011/04/13/facebooks-complicated-ownership-history-explained/ - - tU’s assets in exchange for 1,253,326 shares Connec acquired (worth Facebook settled. finally sides Narendra sent Zuckerberg a cease-and-desist letter. Crimson the Winklevosses learned of the site in cebook.com in February 2004 and, two days later, in-personmeetings. Zuckerberg launched TheFa the twins through a series of 52 emails and severalcommunicated Februaryhe 2004,withand 2003 ment of TheFacebook.com. Between November and Meanwhile,Zuckerberg was deep inthedevelop return for equity. Winklevosses,insite promisingthebuildhelp to the contractverbalwithallegedly entereda into networking site for Harvard students. Zuckerberg twins, of course, are appealing that ruling. ruled this week that change that settlement are falling flat. A U.S. judge with Facebook years ago. Their recent attempts to line is that the Winklevoss twins settled their case It’sconfusinga tangle oflawsuits, butthe bottom the Facebook settlement. ConnectU,tneredwith of a file-sharing service called i2hub that had par malpractice. That’s not all: Wayne Chang, founder twins also sued their law firm, Quinn Emanuel, for misledthemover thetrue value ofthestock. The to rescind the settlement. They argued that Facebook ConnectU founders filed another lawsuit, attempting That wasn’t the end, however. In March 2008, the around draggedout Zuckerberg2004,inprompting legalbattlea that ConnectU’sfounderstion. few months later, as ConnectU, it failed to WhileHarvardConnectiongain trac eventually launched a $180 million . A few dayslater,Winklevossesfewthe and A .

for yearsfor today) and $20 million in cash. the settlement still stands . In FebruaryIntwo the2008, . sued the twinsthesued filed a lawsuit a filed April 13, 2011 The Harvard for 50% of 50%for against . The Page 2 - - - - - Printed with joliprint takingthe server down and wanted to give Ceglia is supposed to have told Ceglia he was thinking of Facebook’safter blockbusterlaunch.Zuckerberg Things allegedly blew up in April 2004, two months and the two agreed to split the project 50/50. that 1% of equity for each day of delay was unfair, ding to the suit, Zuckerberg told Ceglia he thought “stalled them for the time being.” Eventually, accor twins in November 2003, telling Ceglia that he had The suit says Zuckerberg mentioned the Winklevoss such as the site’s domain name and business model. Allegedly, Zuckerberg and Ceglia discussed details signed a contract with a witness present. book.”Thesuit claims thetwo metinBoston and called StreetFax, as well as $1,000 to fund “the face glia offered Zuckerberg $1,000 to work on a projectsupport his claims. The lawsuit now claims that Ceand said he has produced email conversations that refiled his case This week, however, the lawsuit resurfaced. Ceglia felon speakingup. Furthermore, Ceglia is a pecially as Ceglia had waited a full six years beforeThestory sounded outrageous thesurface,on es- to 84% of the company. allegedlydays34 late, Ceglia sayswas heentitled projectwascompleted.wasthebook” Since face 1% of the company each day until a site called “the of Facebook for a $1,000 investment, in addition to anagreement in which Ceglia would receive 50% In the suit, he claimed that he and Zuckerberg had fuel company, put forth in a That’s the notion that Ceglia, owner of a wood pellet stake in Facebook for $1,000? 50% a Zuckerbergpotentiallyselldid week: this Now for the question that has been causing headlines Facebook’s Complicated Ownership History Explained . What About Paul Ceglia? with prominent law firm DLA Piper lawsuit filed last July http://mashable.com/2011/04/13/facebooks-complicated-ownership-history-explained/ aconvicted - - . his money back. Ceglia responded negatively, clai presentative said: fabricated. In an email to Facebookinsiststhatemails thecontractand are stake as compensation. The DLA Piper lawsuit asks for 50% of Zuckerberg’s ming that Zuckerberg was pulling “criminal stunts.” dispute could be stuck in the courts for a long agreed time. to take on the case — which is a DLA sign Piper,that thisone of the world’s largest law firms,yet has another settlement, just to make Ceglia go away.the company may be forced to dish out money for the evidence, the case will be thrown out. But If if theynot, can show that there was any tampering evidence,with including Ceglia’s emails and hard drives. this point that Facebook will be able to look at the enough for the case to move into discovery. It’s at ails — fraudulent or otherwise — may be compelling Facebook is seeking to dismiss this case, but the em convicted felon, and we look forwardconvictedlookde towe felon,and a by brought lawsuit fraudulent a is “This this newest complaint is no better.” that this scam artist’s claims are ridiculous, and fending it in court. From the outset, we’ve said Next Steps Mashable a Facebook re April 13, 2011 Page 3 - - - -