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Winklevoss Twins Still Chasing Zuckerberg

By Jeralyn, Section Law Related
Posted on Fri Feb 25, 2011 at 01:10:33 PM EST
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The LA Times reports on the status of the Winklevoss twins' latest lawsuit against Facebook founder Mark Zuckerberg. They are suing to undo the settlement they reached in 2008, reportedly worth $160 million to the twins, in money and Facebook stock. The case is pending in the 9th Circuit Court of Appeals.

The Winklevosses won't say exactly how much they would seek in their high-stakes grudge fest with the billionaire Facebook founder, but by their own calculations they argue they should have received four times the number of Facebook shares. That would make any new settlement worth more than $600 million based on a recent valuation of Facebook at more than $50 billion.

The Winkelvoss brothers also sued their lawyers who represented them in the original lawsuit. The case was resolved by arbitration, and they were ordered to pay their lawyers the 20% contingency the fee agreement called for. [More...]

Eduardo Saverin, another original partner in Facebook, sued and reportedly received $1.1 billion. The LA Times says legal experts expect the Winklevoss brothers to lose the lawsuit.

Knowing nothing about the case other than having watched The Social Network, which Zuckerberg and others say is "fiction," it's not possible to make an accurate legal prediction. Or to get the negative portrayal the film created of the Winkelvoss brothers out of my mind. So maybe it's not fair for me to say the Winklevoss brothers need to be thankful for their $160 million and move on with their lives. But I'll say it anyway.

Even if the concept for FB was theirs, they didn't build it. Had they proceeded with their "Connect U", using the same formula and coding as FB, it may or may not have become as successful as FB. Many companies that began with a great idea have foundered through poor execution or poor executive decisions made after start-up. The original idea is only a part of what it takes to be a success.

The Winkelvoss brothers may have been inaccurately portrayed in The Social Network. But, having watched it, it's impossible for me to come to any conclusion other than they are about the biggest crybabies ever. One would think if they were smart enough to come up with the idea for FB, they would have been smart enough to come up with another ground-breaking idea in the decade since then. Most geniuses have more than a single idea.

To me, the question is, assuming the Winklevoss' did come up with the idea for Facebook, how much is that idea worth? How many hours did the Winkelvoss' put into Facebook after it launched? None. How many hours did Zuckerberg and his subsequent team put in? Every single one. How can the Winklevoss brothers claim that the success of the Facebook is due to their idea, as opposed to the strategic decisions of how to move FB forward? Had they been equal partners with equal decision making authority in FB after it launched, it's possible they would have made decisions that caused FB's demise, rather than its success.

The Winklevoss brothers say its not about money but principle. Since Zuckerberg can afford to pay them much, much more just to be done with the nuisance of their continued lawsuits, it must be about principle for him too.

The Winklevoss brothers should concentrate on winning their next Olympic rowing bid and be grateful for the settlement they received. Their 15 minutes is so over.

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    Winklevoss Twins Still Chasing Zuckerberg | 13 comments (13 topical)

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    I just wish they'd get a life already (5.00 / 1) (#1)
    by Militarytracy on Fri Feb 25, 2011 at 01:57:56 PM EST


    It does seem absurd to me. I don't know (5.00 / 1) (#2)
    by tigercourse on Fri Feb 25, 2011 at 02:09:31 PM EST
    anything about the case itself but if you gave me 80,000,000 I think I'd be pretty happy with it. In a few years Facebook will probably be defunct anyway (everyone will be keeping touch via wireless chips in their head or something), move on.

    But this homely nerdy not in the cash kid (5.00 / 0) (#3)
    by Militarytracy on Fri Feb 25, 2011 at 02:29:52 PM EST
    keeps raking in the billions while they are rich and beautiful and somehow stuck with finite millions.  It's the principle, and the principles they've lived by are being violated :)  

    Parent
    These 3... (5.00 / 1) (#4)
    by kdog on Fri Feb 25, 2011 at 02:51:48 PM EST
    are like walking talking lawyer stimulus.

    As if Facebook was a genius (none / 0) (#5)
    by observed on Fri Feb 25, 2011 at 03:10:39 PM EST
    idea.. .

    I totally agree (none / 0) (#6)
    by TeresaInSnow2 on Fri Feb 25, 2011 at 03:28:14 PM EST
    Maybe someday it will be (a genius idea), but the technology is about 7-10 years old. I have to wonder why people bother.  I bother, but feel stupid that I do...and I also joined as my DOG, because I won't be forced to lose my anonymity on the internet.  If they kick me off eventually for "violating terms of service," I suspect I'll consider it a win!...because I'll then not feel tempted to join again!

    Parent
    but it ain't nuthin (none / 0) (#8)
    by Militarytracy on Fri Feb 25, 2011 at 03:46:32 PM EST
    An Egyptian named his daughter Facebook a few days ago.  I watched Stephanie Coontz too.  I thought she was wonderful.

    Parent
    Actually (none / 0) (#12)
    by SOS on Fri Feb 25, 2011 at 06:58:21 PM EST
    FB technology is so amateur 1995 would be to generous a compliment.

    Parent
    don't understand the attitude here (none / 0) (#7)
    by bocajeff on Fri Feb 25, 2011 at 03:28:17 PM EST
    Isn't this want the law is about? If they think they are wronged they fight. Big deal.

    And, it's easy to say you would be okay with x amount even if someone else got 80x that. But are you happy with your life knowing that most of the world doesn't have what you have? It doesn't matter.

    Agreed. The twins (none / 0) (#10)
    by KeysDan on Fri Feb 25, 2011 at 06:06:59 PM EST
    have a right to pursue this if they think they have been wronged by earlier suits and settlements, and there is a plausible case to be made on their behalf.  In my view, it would be a long shot for them, but you never know--maybe a revised settlement will do it for all.

    Based on the movie, none of the characters, save Eduardo, were sympathetic.  Even President Larry Summers was, well...Larry Summers. And, Harvard University, its academic rigor and its culture fell short. Of course, please know that myy bias is with state universities, as long as we still have them.

    Parent

    Yes (none / 0) (#11)
    by SOS on Fri Feb 25, 2011 at 06:57:00 PM EST
    Facebook is Maddof 2.0

    This is one time I'll be glad when their lawyers (none / 0) (#13)
    by Mr Natural on Sat Feb 26, 2011 at 06:42:33 PM EST
    end up with all the money.

    Right, Like $160M is Chump Change (none / 0) (#14)
    by ScottW714 on Mon Feb 28, 2011 at 10:56:37 AM EST
    After attorney's, they get $64M each, tax free.  Even if they find the worse money manager ever, and get only get 5%, that $3.2M a year, each, forever.  With good investing, they could double that and never touch the original balance.

    Lottery winners don't see this kind of cash, they have to pay 35% to Uncle Sam; lawsuits don't get taxed.

    Crybabies indeed.

    Winklevoss Twins Still Chasing Zuckerberg | 13 comments (13 topical)

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