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Man Claims to Own 84% of Facebook

Man Claims to Own 84% of Facebook

Shane McGlaun

July 13, 2010

Facebook is no stranger to controversy. Typically, the controversy surrounds new changes to the social network’s privacy standards. As the largest social network online, Facebook boasts many millions of users across the world.

The last legal proceeding having to do with the social network was identified when Germany sued Facebook for violating the privacy of its users. The accusation in the suit was that Facebook illegally accessed and saved personal data of those without a profile on the site.

A new suit has now been filed against Facebook and CEO Mark Zuckerberg by a New York man claiming to own 84% of the social networking giant. A judge presiding over the case has ordered Facebook assets frozen as the trial proceeds.

The man suing Facebook is Paul Ceglia. Ceglia claims to have a signed contract with Zuckerberg from 2003 to develop and design a website that later became thefacebook.com, which eventually turned into the giant Facebook we know today. The contract terms show that Ceglia was to get a $1,000 fee and a 50% stake in the final product.

Reuters reports that the contract also stated Ceglia would, “acquire an additional 1 percent interest in the business, per day, until the website was completed.” At the completion of the project Ceglia claims that his stake in Facebook was 84%. Facebook claims that the suit if frivolous.

The social network is seeking to have the asset freeze struck down. Facebook’s Gary Schmidt states that the asset freeze will not prevent the social networking firm from operating. 
Reuters reports that Zuckerberg was supposedly working on other projects in 2003 at the time Ceglia contends he had the signed contract for work resulting in Facebook. The domain name TheFacebook.com was registered in 2004.

_© 2009, DailyTech.


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