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.
"The Space Elevator will be built about 50 years after everyone stops laughing" -- Sir Arthur C. Clarke
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