Facebook Says New York Lawsuit Is a Fraud

Bob Van Voris Bloomberg.com 05/26/2011 19:41

Facebook Inc. and its co-founder Mark Zuckerberg admitted some factual allegations in a lawsuit by a western New York man who says a 2003 contract entitles him to half of Zuckerberg’s Facebook holdings, while calling the case as a whole “a fraud on the court.”

In an answer filed today in federal court in Buffalo, Facebook and Zuckerberg admitted that the two men met in the lobby of a Boston hotel in April 2003 and that Zuckerberg, then a Harvard University student, signed a contract with Ceglia to work on StreetFax.com, a company Ceglia was trying to start at the time, after answering an online job posting.

Facebook and Zuckerberg today denied the principal allegations of the suit, claiming that Ceglia’s claims are based on a doctored contract and fabricated e-mails. The contract Zuckerberg signed had nothing to do with Facebook, they said.

In an amended complaint filed last month, Ceglia quoted from e-mails he claimed he exchanged with Zuckerberg, which he said support his claim that the two men formed a partnership that gave Ceglia half-ownership of Facebook when it was launched in 2004.

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