SAN FRANCISCO – The Associated Press
A federal appeals court ruled Monday that former Harvard University schoolmates of Facebook founder Mark Zuckerberg can’t undo their settlement over creation of the social networking site.
The 9th U.S. Circuit Court of Appeals said Tyler and Cameron Winklevoss were savvy enough to understand what they were agreeing to when they signed the agreement in 2008. The deal called for a $20 million cash payment and a partial ownership of Facebook. A third classmate, Divya Narendra, was part of the settlement with the twins but did not pursue the second lawsuit seeking to undo the agreement.
Monday’s ruling upholds a lower court decision enforcing the settlement during the six years of litigation that grew so contentious that the dispute was dramatized in the Oscar-nominated film, “The Social Network.”
The settlement is now worth more than $160 million because of Facebook’s increased valuation. The twins had alleged they were misled about Facebook’s value when they agreed to settle their lawsuit that claimed Zuckerberg stole their idea to launch Facebook. “At some point, litigation must come to an end,” chief justice Alex Kozinksi wrote for the unanimous three-judge panel “That point has now been reached.” Facebook said it was pleased by the ruling.
(Source: www.hurriyetdailynews.com )
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