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The long-running legal dispute between Facebook and ConnectU is finally over

Facebook CEO Mark Zuckerberg and company did not commit fraud after completing a copyright infringement lawsuit when Facebook settled out of court with competing service ConnectU last February.  

Court records released late yesterday indicate Zuckerberg paid an undisclosed sum in cash and stock to several of his former Harvard classmates who hired Zuckerberg to help work on their project.  

The two sides agreed to a settlement in February, but ConnectU dragged Facebook back into court on Monday, attempting to see if it could get the court case reopened.   But Judge Ware took just two days before rejecting ConnectU's bid, stating, "The court finds that the agreement is enforceable and orders its enforcement."  

ConnectU tried to claim Facebook failed to disclose the value of common stock it had received from Facebook, but the judge decided there was no evidence Facebook misrepresented the stock.

The competing ConnectU social networking site still believes the agreement in February was only a tentative agreement and shouldn't have been enforceable.

ConnectU wanted to try and reopen the case after it allegedly found new evidence it wanted to show the judge to try and prove Zuckerberg used stolen code and ideas to create Facebook.

"We are happy that Judge Ware enforced the agreement settling our dispute with the ConnectU founders," Facebook said in a statement.  "The ConnectU founders understood the deal they made, and we are gratified 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."

In an interesting turn of events, much to the dismay of journalists wanting to cover the case, U.S. District Judge James Ware unexpectedly barred the media and public from the court room over the past week.

Facebook has helped turn Zuckerberg into a billionaire, with the large amount of money targeting him in several other lawsuits.  The worst case scenario could have seen Zuckerberg lose control of the company he started in 2004 while still studying at Harvard.

The case between Facebook and ConnectU is now officially closed.



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Wow
By pauldovi on 6/27/2008 9:22:44 AM , Rating: 2
That was fast.




RE: Wow
By JediSmurf on 6/27/2008 9:26:09 AM , Rating: 2
If only all court cases worked out in 2 days.


RE: Wow
By FDisk City on 6/27/2008 9:30:28 AM , Rating: 5
quote:
That was fast.


That’s what she said!

Oh wait. No! Where’s the edit button?!


RE: Wow
By tmouse on 6/27/2008 10:06:55 AM , Rating: 3
I guess the morale of the story is think before you sign, you only get one dip in the well.


RE: Wow
By FingerMeElmo87 on 6/27/2008 10:43:36 AM , Rating: 2
wow, connectu are a bunch of douche bags


WTF?
By StuckMojo on 6/27/2008 11:30:38 AM , Rating: 2
*Billionaire*??? Seriously? I think I'm going to puke.




RE: WTF?
By threepac3 on 6/27/2008 2:39:32 PM , Rating: 2
Maybe if you went to Harvard you might have a shot at billionaire status.


Billionare?
By Rebargod on 6/27/2008 4:12:11 PM , Rating: 2
Guess I should have built social sites in the late 90's instead of pornsites! LOL




HUH?!?
By Alexstarfire on 6/27/2008 5:30:03 PM , Rating: 2
"Facebook failed to disclose the value of common stock it had received from Facebook."

Anyone else understand that? How can Facebook fail to disclose the value of its own company to itself?




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