July 14, 2010

Facebook Gets Sued for 84% of Ownership

And today on the topic of ridiculous lawsuits! Paul Ceglia, a wood pellet distributor who claims he had signed a contract with Facebook in 2003 to design and develop thefacebook.com, Facebook’s original name, is suing the social media website. No, Mr. Ceglia isn’t suing the website for a set monetary amount. He’s going for the juggler. He wants power in the form of 84% of ownership of the website.

The lawsuit was filed in the Supreme Court of Allegany County in New York last month and according to the contract he signed with the people behind “thefacebook.com”, he was to be given $1,000 and a 50% stake in Facebook for the services he provided. Not only that, but he claims he was also to be given a 1% stake in the company for each day that passed until the site was finished. The website was complete on February 4, 2004 and after adding it all up, Ceglia claims that he should rightfully be owed 84% of Facebook.

The lawsuit is a little weird because firstly, where has this guy been? Facebook is bigger now than it has ever been which definitely piques your interest when you’re thinking of the perfect time to sue a company and get a pretty penny out of them. Ceglia has not made any mention of this case for over six years after he had signed the contract with Facebook. Furthermore, Ceglia was just sued last year for failing to deliver wood pellets to customers. He racked up damages to the effect of $200,000. How is he going to dig himself out of that whole? Well, 84% of Facebook should more than cover it, don’t you think?

While the likelihood of Paul Ceglia actually walking out of court with 84% ownership of Facebook is very slim, the court has issued a temporary restraining order which makes it illegal for Facebook founder Mark Zuckerberg and Facebook to transfer any assets. To put it lightly, Facebook is definitely feeling the pressure from this court case. Facebook will need to go to court to disprove Ceglia’s claims and from the sounds of it, the lawsuit sounds pretty ridiculous, to say the least. How does a company give a web designer and developer stake in the company and keep adding to the stake the longer it takes him to complete his work? That is just rewarding someone for not completing a project and that makes absolutely no sense.

You can see the entire lawsuit and all 9 court documents over at Mashable.

By Holly

2 Comments

Posted in Social Media & Networking , Technology

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About the Author: Holly Ord

In addition to being the Founder and Editor of Woman Tribune, Holly Ord is a freelance writer, web designer and developer, feminist activist and blogger, and hopeless video game addict. She lives in Northeastern Pennsylvania and has been blogging on liberal politics and gender equality on her personal website, Menstrual Poetry since 2007.

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2 Comments on Facebook Gets Sued for 84% of Ownership / Add Your Comment

wood chippers and shredders says:

August 7, 2010 at 5:46 am

It is truly an amazing world that some people inhabit. Once the write something, it can not be questioned.
Franz Kafka might think that he had stumbled into the world of his fiction.

ray says:

December 31, 2010 at 11:20 pm

oh i wouldnt doubt that this little creep zuckerberg ripped this guy off , why would anyone file a claim of this magnatude unless he telling the truth i belive this guy . Zuckerbergs an idiot masterbater anotherbill gates wanna be looser i hope he gets his butt sued he deserves it

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