Facebook settlement under fire: The Winklevoss twins ask court for more

Facebook settlement under fire: The Winklevoss twins ask court for more

Summary: Mark Zuckerberg's former Harvard classmates - twins Cameron and Tyler Winklevoss - have changed their mind about a $65 million settlement from Facebook in 2008 and have asked an appeals court to void it, arguing that Facebook didn't disclose an accurate valuation of its shares before agreeing to pay them $65 million in stock and cash, according to a Bloomberg report.

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Mark Zuckerberg's former Harvard classmates - twins Cameron and Tyler Winklevoss - have changed their mind about a $65 million settlement from Facebook in 2008 and have asked an appeals court to void it, arguing that Facebook didn't disclose an accurate valuation of its shares before agreeing to pay them $65 million in stock and cash, according to a Bloomberg report.

The lawyer representing the Winklevoss brothers says that the lawyers on both sides of the original settlement "made a mistake" with the settlement, noting that the transaction had "business issues that needed to be addressed and weren't. They ended up with an agreement that's vulnerable to the attack we're making on it." He argued that the settlement should be worth more now that Facebook has received a $450 million investment from Goldman Sachs.

Facebook has argued that the settlement is enforceable and that the Winklevosses are suffering from "settlers' remorse.."

I'm inclined to side with Facebook on this one. Can anyone really expect a court to void a year-old settlement because the company is now worth more? Of course it's worth more - it's growing. And, at this rate, it will continue to grow even more. Are we to expect the Winklevoss brothers to try to void a settlement every time Facebook shows signs of valuation growth?

The Winklevoss brothers should take their money and move on. The Facebook of today isn't the same Facebook that was launched on the Harvard campus. This is the Facebook that Zuckerberg and his team in Palo Alto have built into what it is today.

If the courts void the settlement and bring this matter back into the judicial system, the only ones sure to get paid will be the lawyers.

Topics: Legal, Enterprise Software, Social Enterprise

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24 comments
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  • RE: Facebook settlement under fire: The Winklevoss twins ask court for more

    By that logic, if Facebook was doing poorly, they could ask a court to void the settlement and pay the twins less.
    AbredPeytr
  • If there was fraud involved, of course the settlement should be revisited

    [i]Facebook didn?t disclose an accurate valuation of its shares before agreeing to pay them $65 million in stock and cash[/i]

    If Facebook lied about how much the company was worth and the settlement was based on some percentage of the company's worth at the time, then absolutely the settlement should be revisited. Go ahead, lie to your ex-spouse about how much money you have when you come up with a divorce agreement and see how quickly your divorce agreement gets revisited!!
    NonZealot
    • RE: Facebook settlement under fire: The Winklevoss twins ask court for more

      @NonZealot Dude need to get a life this is not a divorce just because you had one that don't mean that they were married in collage stick to the issues.
      Wildfire365@...
      • RE: Facebook settlement under fire: The Winklevoss twins ask court for more

        @Wildfire365@... His point is entirely valid, and draws a distinct parallel.

        No one is saying anything about FaceBook being married to two guys in COLLEGE, much less grade-school spelling and grammar.
        lelandhendrix@...
    • RE: Facebook settlement under fire: The Winklevoss twins ask court for more

      @NonZealot They should have brought it up during the proceedings that FB was lying about the valuation and they shouldn't have agreed to settle if they didn't think it was fair. It's obvious these whiny punks are just greedy. What have they done to increase FB market share to where it is today? Nothing.
      trgeorge
  • RE: Facebook settlement under fire: The Winklevoss twins ask court for more

    Greedy little punks.
    MoeFugger
    • RE: Facebook settlement under fire: The Winklevoss twins ask court for more

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  • Settlement

    It's the same with any venture,.. either you take the lump sum or a percentage. If the twins weren't so greedy and if they had one ounce of belief in "their" idea, they would've settled for a lower sum and a percentage of futures. That's what I would've recommended.
    JSpeils
  • From nothing to 30 million a piece in a small span of time

    Buy a house, a couple nice cars, and live nicely off the interest.

    they still have Facebook stock, let it rise, then sell when desired for even more money.
    John Zern
  • Although Mr. Dushbag stole the idea ...

    .. you can't come out and change an settlement that was already signed just because Mr. Dushbag is making more money now.

    The two dweebs signed the agreement so they have to live with it. Besides, Facebook is only worth millions in ink numbers. I haven't seen a single proof that Facebook is actually making any real money from something other than selling private/personal information (voluntarily given away by idiots) to the highest bidder.
    wackoae
    • The Facebook . . .

      @wackoae

      assumed value is starting to remind me of the whole DotCom mess . . .
      JLHenry
    • RE: Facebook settlement under fire: The Winklevoss twins ask court for more

      @wackoae I'm probably one of these so called naive idiot you called. I went to read facebooks rules and I haven't seen anywhere that they are resaling informations on me.
      In fact, even they would do, it does appear illegal.
      Would someone give me e proof they are doing it ?
      Thank you.
      John Dow
      vdjondo@...
      • RE: Facebook settlement under fire: The Winklevoss twins ask court for more

        @vdjondo@... You have to be kidding me... Right?

        Please spend some time using google on this topic, and go back and read the user agreement with FaceBook VERY CAREFULLY.
        lelandhendrix@...
    • RE: Facebook settlement under fire: The Winklevoss twins ask court for more

      @wackoae

      Actually, it's quite complicated. Facebook is a private company, and it is therefore not required to make detailed financial filings. However, between facebook games and advertising, Goldman estimated their paper value in the billions. Now, one can argue Goldman is a corrupt evil company and lying like they did about the derivatives they were trading a decade ago, but assuming they're not lying that "paper value" is just as good as say AMD's "paper value".
      tkejlboom
  • That's why they call it a Settlement

    A deal is a deal. If you think they were lying about something then the time to find this out is during discovery. That's why you hired attorneys. We can't ask our businesses to rework settlements well afterwards. There then would be no incentive to settle. If anything they should be angry that their attorneys didn't do their jobs properly (assuming if their claim is correct that Facebook withheld information). Even then the onus is on you to prove they are withholding information.

    It is rather childish to ask to have a settlement re-worked.
    pizzaman7
  • RE: Facebook settlement under fire: The Winklevoss twins ask court for more

    True, if they did lie saying Facebook was worth a fraction of what it is actually worth, then the brothers should be fairly compensated.
    m3kw9
    • RE: Facebook settlement under fire: The Winklevoss twins ask court for more

      @m3kw9
      If the knowledge of the $450M from Sachs was disclosed during the time of the settlement. If I read it correctly it was after the fact and a year later, then I agree, but it appears they did not lie.
      ofonemind
  • RE: Facebook settlement under fire: The Winklevoss twins ask court for more

    Never look a gift horse in the mouth, if this gets revisited and FB argues a good argument, they may end up with less that what they have been awarded. Remember "Money is the root of Evil". Take the money which is more than most people will see in a lifetime and be grateful.
    ofonemind
    • RE: Facebook settlement under fire: The Winklevoss twins ask court for more

      @ofonemind I agree, though the phrase is "the Love of money is the root of evil". And they are showing they love money and are not happy with what they have.
      grayknight
  • RE: Facebook settlement under fire: The Winklevoss twins ask court for more

    From doing no work, no investment to getting thirty million plus dollars for "idea"...how greedy and jealous can people get!
    pyter