Lawsuit against Facebook: Paul Ceglia claims 84% stake in Facebook

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The world's No.1 social network is battling a lawsuit filed against Facebook and CEO Mark Zuckerberg by Paul Ceglia claims to own 84% stake in the website. The Supreme Court of New York where Ceglia field a civil lawsuit, ordered to freeze company's assets temporarily as the trial proceeds. But the asset freeze will not prevent Face book from operating.

Paul Ceglia from New York claims that he signed a contract with Zuckerberg in 2003 to design and develop a website later became the most popular social networking website 'thefacebook.com' as we know today. According to the copy of the contract, the Seller (Mr.Zuckerberg ) offered  the Purchaser  (Ceglia )a fee of $1,000 and a 50 percent stake in the product and an additional 1 % interest in the business per day, until the website was completed. As of February 4, 2004, Ceglia claims to have an 84 percent stake in the company.

Facebook dismissed the suit saying that it was completely frivolous. According to Network Solutions online, the domain name for TheFacebook.com was not registered until Jan 2004.Reuters reports that Mark Zuckerberg was dealing with some other projects during that period.


Facebook which is launched  in February 2004  has nearly 500 million user and ranks among other popular websites alongside Google Inc, Yahoo Inc and Microsoft Corp. The site received a $200 million investment from the Russian firm Digital Sky Technologies in 2009 and now it is estimated to be worth $6.5 billion.

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