Man Claims 84% Stake in Facebook, Gets TRO; FB Calls Suit Frivolous
A man who claims he entered into an April 2003 website development contract with Facebook that gave him an 84 percent interest in the social networking website has won a temporary restraining order in New York state court preventing the closely held company from transferring assets.
However, a spokesman for Facebook calls the suit frivolous and promises a vigorous defense, the Wall Street Journal reports. The company is also seeking to move the case to federal court.
The newspaper reports that the alleged contract calls for plaintiff Paul Ceglia to receive $1,000 plus a 50 percent stake plus an additional 1 percent interest in the business for every day after Jan. 1, 2004, until the work was completed. The Facebook domain name was registered in January 2004.
Ceglia was accused by New York Attorney General Andrew Cuomo last year of defrauding customers in an unrelated wood-pellet fuel business.
Additional coverage:
Wellsville Daily Reporter: ‘Does Wellsville man own Facebook?’
