Facebook Sues Law Firms That Represented Ceglia; Claims Fraud

Advertisement
By Associated Press | Updated: 21 October 2014 10:12 IST
Facebook is suing several law firms that represented a man who claimed he owned half of the social network and was entitled to billions of dollars from the company and its CEO Mark Zuckerberg.

The case was dismissed in April and the man, Paul Ceglia, is facing related criminal charges. Facebook Inc. and Zuckerberg filed a lawsuit Monday against DLA Piper and other law firms and lawyers, saying they conspired to file and prosecute a fraudulent lawsuit. DLA Piper is one of the world's largest business law firms.

Ceglia claimed in a 2010 lawsuit that he and Zuckerberg signed a 2003 software development contract that included a provision entitling him to half-ownership of Facebook in exchange for $1,000 in startup money for the budding company. Facebook's lawyers had claimed that while the two did have a contract, references to the company were slipped in for the lawsuit.

Advertisement

In its lawsuit filed in New York State Supreme Court, Facebook claims that the lawyers representing Ceglia "knew or should have known" that his lawsuit was fraudulent and "based on an implausible story and obviously forged documents."

Facebook, which is based in Menlo Park, California, is seeking unspecified damages along with reimbursement of its expenses racked up in defending itself against the lawsuit.

"We said from the beginning that Paul Ceglia's claim was a fraud and that we would seek to hold those responsible accountable," Colin Stretch, Facebook's general counsel, said in a statement. "DLA Piper and the other named law firms knew the case was based on forged documents yet they pursued it anyway, and they should be held to account."

DLA Piper called the suit "baseless" and said it was filed to intimidate lawyers from suing Facebook.

Advertisement

"DLA Piper, which was not part of this case at its outset or its conclusion, was involved for 78 days," Peter Pantaleo, the firm's general counsel, said in a statement. "Facebook and Mr. Zuckerberg claim that they were damaged in those 78 days, yet a mere 10 months after DLA Piper withdrew from the case and while the litigation was still pending, Facebook went to market with an initial public offering that valued the company at $100 billion."

Other law firms named in the suit, including Milberg LLP and Paul Argentieri and Associates, could not immediately be reached for comment Monday afternoon.

Advertisement

Ceglia is awaiting trial on criminal fraud charges related to the case. He is accused of doctoring and destroying evidence to support his Facebook claim, and has pleaded not guilty.

Facebook's lawsuit says Zuckerberg and Ceglia signed a two-page contract in April 2003, "months before Zuckerberg had even conceived of the idea that became Facebook."

Advertisement

"That contract had nothing to do with Facebook or any other social networking service," the lawsuit says, adding that Ceglia and Zuckerberg stopped communicating in 2004.

Facebook, then called Thefacebook.com, launched in February 2004 out of Zuckerberg's Harvard dorm room. It was first open only to Harvard students and the decade since it expanded into the world's largest online social network with more than 1.3 billion users. The company went public in 2012. It now has a market value of nearly $200 billion.

Its stock ended Monday up $1, or 1.3 percent, at $76.95.

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. BGMI Air Gets New Name as Krafton Prepares Lighter Battle Royale Experience
  2. Caller Name Presentation to Become Mandatory From Next Month
  3. Amazon Great Indian Festival 2026: Best Deals on Samsung Products
  4. WhatsApp Now Lets You Invite Non-Users to Free, Encrypted Calls
  5. Samsung Galaxy S27, Galaxy S27+ Could Miss This Selfie Camera Upgrade
  6. Redmi K100 Could Launch Soon at This Price: See Expected Specifications
  7. iQOO Pad Pro 8.8 Launch Confirmed; Specifications Teased
  8. iPhone Duo Screen Repair Costs Almost as Much as an iPhone 18 Pro
  9. These Old Galaxy Flagships Are Getting the Stable One UI 9 Update
  10. Amazon Great Indian Festival 2026: Best Deals on LG Products
  1. iPhone Duo Screen Repair in India Costs Almost as Much as an iPhone 18 Pro
  2. DoT Mandates Caller Name Presentation for 5G and 4G Networks From Next Month
  3. iQOO Pad Pro 8.8 Launch Teased; Confirmed to Feature 9,020mAh Battery
  4. Oppo Reno 17 Design Spotted in Leaked Hands-On Image; Oppo Reno 17 Pro Unlikely to Launch in India
  5. Bitcoin Slips Below $81,000 as Hot US Inflation Revives Fed Rate Concerns
  6. Krafton Renames BGMI Lite to BGMI Air Ahead of Launch in India as Pre-Registrations Cross 10 Million
  7. Samsung Galaxy S27 and Galaxy S27+ to Launch Next Year With the Same Selfie Camera as Galaxy S26: Report
  8. Samsung Galaxy S23 Series, Galaxy Z Fold 5 Start Receiving One UI 9 Update Based on Android 17: Report
  9. Epic Games Releases New 'Vibe Coded' Epic Games Store Launcher in Preview, Faces Backlash Over Bugs
  10. Redmi K100 Launch Price Tipped Online Along With Key Specifications
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.