Court Rules in Favor of Facebook VS ConnectU

June 26th, 2008 at 12:00 am

winklevoss twins and zuckerberg

The battle is finally over between Facebook and ConnectU. No they did not just shake and make up but they were compelled ordered by the judge to stop the dispute naming Facebook the winner.

We wrote about this a couple of months ago. ConnectU founders were accusing Facebook founder Mark Zuckerberg of stealing the whole I dea of Facebook from them while they were Harvard undergrads.

Judge James Ware of Federal District Court in San Jose, Calif., finally sided with Facebook and implemented the settlement the two companies discussed last February. ConnectU was disappointed that the settlement was not based on Facebook’s $15 billion valuation (the same valuation Microsoft invested in a year prior). Without the $15B valuation, the settlement amount ConnectU would receive from Facebook was disappointingly smaller.

On the other hand, Facebook released a statement which was full of relief that the whole dispute is finally behind them.

"We are happy that Judge Ware enforced the agreement settling our dispute with the ConnectU founders. ConnectU’s founders were represented by six lawyers and a professor at Wharton Business School when they signed the settlement agreement. The ConnectU founders understood the deal they made, and we are gratified that the court rejected their false allegations of fraud. Their challenge was simply a case of “buyer’s remorse,” as described by the Boston court earlier this month.

We were disappointed that we had to litigate the settlement, as we believed we were caught in the middle of a fee dispute between ConnectU’s founders and its former counsel. Nevertheless, we can now consider this chapter closed and wish the Winklevoss brothers the best of luck in their future endeavors."