Facebook goes on the offensive to protect its founder from a man it says is a scammer
When Facebook called Paul Ceglia, the man who claims to have a contract with Mark Zuckerberg for half of Facebook, an “inveterate scam artist,” Ceglia’s lawyers at DLA Piper replied that the company had no facts to back that claim up. “We are prepared to move the case forward into discovery and our client looks forward to his day in court,” said DLA.
Facebook is ready for discovery too: their lawyers at Gibson Dunn have filed to expedite it. Their attached memorandum of law makes a strong case against Ceglia. Facebook’s hoping to give Ceglia his day in court, but it’s hoping that it’s a criminal court.
Facebook wants the original version of the contract that Ceglia claims Mark Zuckerberg signed and the emails that Ceglia said were exchanged regarding that contract. Facebook says they’re as fake as that app that claims to let you see who your Facebook stalkers are. To support their claims, they’ve dug into the dark corners of Ceglia’s past, mentioning again his drug and fraud convictions as well as disclosing a land scam that Ceglia has allegedly been running for years, that had not previously been discovered. Note to self: do not sue huge corporation with any potential skeletons in the closet.
If the allegations Facebook’s lawyers make are true, Ceglia could end up with prison time instead of a hefty chunk of Facebook stock.
Facebook and Mark Zuckerberg respond to Paul Ceglia, the wood chipper who claims to own half of Facebook
Now that the Winklevoss twins have been sent packing by Chief Judge Alex Kozinski (with a kick in the ass on the way out the door from the rest of the Ninth Circuit), with a 0.00% chance of the Supreme Court taking their case, Facebook’s lawyers can focus on the latest “Actually, I Own Facebook” lawsuit.
Paul Ceglia claims to have a contract with Mark Zuckerberg that entitles him to half of the company. Zuck supposedly signed away a stake in Facebook in 2003 while a Harvard undergrad in exchange for $2,000 in seed money from Ceglia.
In an amended complaint filed in April (with the help of DLA Piper), Ceglia claimed to have some damning emails from Zuckerberg where they discussed “the face book” project at length. Ceglia said the emails showed that Zuck deceived him, allegedly telling him the site was not very popular with the Harvard kids, and asking him if he would like his $2,000 back — at the same time as Zuckerberg was moving out to California to ramp up operations.
Lawyers at Gibson Dunn filed Facebook’s response to Ceglia’s lawsuit this week, calling him a scam artist and saying that the contract he claims to have is “doctored” and that the evidence he has produced is “fabricated.” Here’s the scorching opener to the answer, which was certainly written as much for the media as for the judge….
Lawyers love to talk about how technology always moves faster than the law. Nowhere is that tension more apparent (and sadistically fun to observe) than within the mean streets of Facebook. We’ve covered legal standards surrounding Facebook before — and it never gets old.
This week, a defense attorney in a personal injury case learns that just because you ask to be someone’s Facebook pal, that doesn’t mean they have to say yes. Even if you ask through the court system and your would-be “friend” happens to be suing your client for car-crash injuries.
A shocking revelation, right? Details after the ol’ jump.
Although I’m no longer an editor here at Above the Law (*tear*), you know my byline occasionally still pops up to bring you news of lonely lawyers and goings-on in the world of privacy. This week, I asked Elie and Lat if they were interested in a lawsuit against a computer rental store accused of spying on its customers via webcam. (Most shocking aspect to me: People actually rent laptops?) Or the recent reminder from the Seventh Circuit that looking at porn at work — even if just for 67 seconds — can get you fired (at least he got the job done quickly).
Instead, Elie saw that I’d recently written about WikiLeaks founder (and dancer extraordinaire) Julian Assange — who’s still kicking it in England — calling Facebook “the most appalling spying machine ever invented.” Elie asked, how is that guy not in a jail in Sweden by now? And why have no major banks bitten the WikiLeaks bullet since we last heard from the white-haired wonder?
An update on the Julian Assange – WikiLeaks saga, after the jump…
* Kesha’s publicist really needs to talk to Kesha’s lawyers about filing lawsuits that make Kesha Ke$ha look lame. [Thomson Reuters]
* You don’t really think you’re going to get a law school to roll over and pay $40 million to snookered students like a cooking school would? Crappy law schools might not be training great lawyers, but they can certainly afford to hire some. [Inside Scoop SF]
* How to subpoena information put on Facebook, or as I like to call it: “How to ruin it for everybody.” [An Associate's Mind]
* “A less gilded future”: an overview from The Economist of the state of the legal economy. [The Economist]
* Chief Judge Kozinski isn’t the only one who loved the new movie Atlas Shrugged. [Dealbreaker]
* Monica Goodling gets a public reprimand by the Virginia state bar. In other completely pointless actions, I just high-fived a Mexican for Cinco de Mayo. [Virginia Lawyers Weekly]
* Speaking of which, I’ve had too many tequila shots today to get hyped up about the Confederate flag. [WSJ Law Blog]
* Seriously guys, take the hint, it’s Cinco de Mayo — it’s okay to sneak out from work and have a drink with friends… assuming you still have friends. Here are some fun facts and music to get you in the mood. [Christian Science Monitor]
I’m done whining about Facebook privacy issues. Everyone should know by now that Facebook and privacy are basically mutually exclusive.
But every once in a while, someone does something stupid relating to Facebook privacy in a new, exciting way — like stealing a computer and posting photos of yourself on the owner’s page, or uploading placenta pics from your nursing-school class. We enjoy mocking covering such special occasions. It’s even better when Facebook bungles have larger implications.
Last week, an emergency room doctor in Rhode Island got reprimanded and fined $500 by the state medical board. (She had been fired from her hospital last year.)
Why? She posted information about a patient on Facebook….
* House Speaker John Boehner and former U.S. Solicitor General Paul Clement, now at King & Spalding, have joined forces to fight marriage equality by defending DOMA. Talk about two people who will not be taking their talents to South Beach. [The BLT: The Blog of Legal Times]
* The tax returns of Barack Obama and Joe Biden have been made public. Notes Professor Paul Caron: “It’s amazing how much more politicians give to charity in years in which they know their tax returns will be released to the public (although Biden still tosses around gifts to charity like manhole covers).” [TaxProf Blog]
* If you were underwhelmed with OCI at your law school, a new service — JD Match, founded by law-firm consultant and blogger Bruce MacEwen — wants to try to match you up with employers ready to hire. [WSJ Law Blog]
* People keep acting like their law firms are hunting for associates expressing discontent. But law firms aren’t as paranoid as Roger Ailes. [Gawker]
* It’s always nice when our nation’s legal system comes to the defense of punk bands. [Los Angeles Times]
* It’s almost time for the anniversary of the historical basis for Texas thinking it’s better than everybody else. [The Defense Rests via Blawg Review]
Thanks to Ben Mezrich, David Fincher, and Aaron Sorkin, we all feel like we know the backstory of the creation of Facebook (shameless plug: please like the ATL Facebook page). It goes something like this: Mark Zuckerberg was a shady little brat, who screwed over his one friend while he was building what would become a multi-billion-dollar company. Roll credits.
Legally, just yesterday it seemed that Zuckerberg and Facebook were finally in the clear. The Ninth Circuit told the amazingly privileged Winkelvoss twins to go away, and it appeared that everybody could go back to masturbating to Facebook friends without worrying about who really owned the thing.
But not so fast. There is another outstanding Facebook lawsuit that has recently been amended and refiled in federal court. We’ve reported before on the claims of fraudster Paul Ceglia. Now he’s back, and he’s got some explosive new evidence to support his claims to 50% ownership in Facebook — as well as new counsel.
Is the evidence credible? It depends: do you trust DLA Piper?
The Winklevoss twins might be hot -- but their case is not, according to the Ninth Circuit.
If you enjoyed The Social Network, then perhaps you should be grateful to Cameron and Tyler Winklevoss. The lawsuit they filed against Facebook and Facebook’s founder, Mark Zuckerberg, gave rise to excellent entertainment. The movie wouldn’t have been possible without it.
But now the litigation is getting… old. And some people just want the Winklevoss twins to go away. Like three judges on the U.S. Court of Appeals for the Ninth Circuit.
In a ruling handed down today, rejecting the Winklevosses’s effort to overturn an earlier settlement with Facebook and Zuckerberg, the Ninth Circuit dispensed some stinging benchslaps. The opinion contains detailed and erudite analysis of both California contract law and federal securities law, but it can be summarized in four words: “Winklevii, STFU and GTFO.” (Feel free to use that in your headnotes, Westlaw and Lexis.)
Who wrote the opinion? None other than the ever-colorful Chief Judge Alex Kozinski, of course!
Let’s see what His Honor had to say — plus learn about additional Kozinski-related and movie-related news….
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The holiday season is upon us, and yet again, you have no idea what to get for the fickle lawyer in your life. We’re here to help. Even if your bonus check hasn’t arrived yet, any one of the gifts we’ve highlighted here could be a worthy substitute until your employer decides to make it rain.
We’ve got an eclectic selection for you to choose from, so settle in by that stack of documents yet to be reviewed and dig in…
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