Facebook appeals Ceglia claim asset freeze at Federal court

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Facebook appeals Ceglia claim asset freeze at Federal court

Warwick Ashford

Facebook is trying to overturn an order temporarily blocking any transfer of the company's assets as the social networking firm responds to a website developer's claim to own 84% of the company.

The claim was made in a civil lawsuit filed in June by Paul Ceglia in the Supreme Court of New York's Allegany County, according to US reports.

Paul Ceglia claims he signed a contract with Facebook co-founder Mark Zuckerberg in 2003 to develop a website that entitled him to a 50% stake in the product that eventually became Facebook.

He also claims the contract awarded him an additional 1% stake for every day of the project, giving him a total stake of 84%.

According to official histories of Facebook, Mark Zuckerberg did not come up with the idea until after April 2003. Records show the internet domain name "TheFacebook.com" was registered in January 2004.

When Ceglia filed his claim in the Supreme Court, he won a temporary injunction restricting Facebook from selling or disposing of assets until the lawsuit is settled.

The case has been moved to federal court, where Facebook has asked that Allegany Court Judge Thomas Brown's order restricting the transfer of company assets be struck down, according to Reuters.

Facebook, which has described Ceglia's case as "frivolous", said that although it had asked for the order to be struck down, it did not affect the company's ability to do business.


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