Man sues for large stake in Facebook
Paul Ceglia is claiming 84 percent of social networking Web site
Paul Ceglia, a man from Wellsville, a small town in New York, has filed a civil case against the Mark Zuckerberg, the founder of social networking Web site Facebook. Ceglia, who says that he has a written contract signed by Zuckerberg, is claiming ownership of 84 percent of Facebook.
In the suit, Ceglia is seeking a "declaratory judgment that defines ownership rights." The case, which is in the Allegany Country State Supreme Court, claims that Zuckerberg broke a contract he had signed in 2003. In an interview with the Wall Street Journal, Ceglia claims that the contract allowed him to purchase a 50 percent stake in the social networking Web site for $1000.
An additional provision in the contract says that Ceglia would receive an additional one percent stake in the company for every day onwards until the completion of the website. A work-for-hire contract is included in the suit, which bears what Ceglia claims to be Zuckerberg's signature. A judge has granted a restraining order on Facebook to keep the company from transferring assets.
Facebook described the suit as "frivolous" and is requesting to transfer the case to the federal court in Buffalo.