Court hears trio’s Facebook case

Tyler Winklevoss

The Winklevoss twins tell Rory Cellan-Jones in April 2010 that they will continue their fight

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Three men who say Mark Zuckerberg stole the Facebook concept from them have asked a US appeals court to re-open a $65m (£42m) legal settlement with the company.

Tyler and Cameron Winklevoss and Divya Narendra argue Facebook undervalued its share price when they struck the deal.

With the company now valued at about $50bn, they charge the deception cost them millions and now want more money.

Mr Zuckerberg, who was at Harvard with the three men, has denied the claims.

In a courtroom in San Francisco, lawyers for the Winklevoss twins and Mr Narendra asked the Ninth Circuit Court of Appeals to allow them to re-open a $65m settlement forged in 2008 after they sued the company.

Facebook agreed to the settlement to end “rancorous litigation” but did not admit Mr Zuckerberg had taken their idea.

Senior Judge Clifford Wallace said on Tuesday that the twins had several lawyers representing them at the earlier settlement talks, and that that their father was a business expert, factors he suggested made it hard to believe that anyone took advantage of them.

“I agree my clients were not behind the barn door when brains were passed out,” Jerome Falk, a lawyer for the twins, was quoted by Reuters as saying.

The three men are effectively gambling the $65m settlement, analysts say. If the court unwinds the agreement, Facebook will have to decide whether to offer more money or fight it out in court.

Facebook’s lawyers have dismissed the claims as a case of “settlers’ remorse”.

In the 2008 settlement, the brothers received $20m in cash and $45m in stock, based on a $36 per share valuation, Mr Falk said before the hearing.

He argues Facebook had agreed to a $9 per share price in a compensation offer to employees, a price they say the company was obligated to disclosed.

“This was a highly material fact and the fact they didn’t disclose it is a violation of federal security law,” Mr Falk told BBC News.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

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