LOS ANGELES (LALATE) – The Winklevoss twins have appealed, again, their Facebook case. The Winklevoss twins appeal follows a previous decision before the 9th U.S. Circuit Court of Appeals in which the twins were unsuccessful. Earlier this month, the twins were given a ruling from a three judge panel for the 9th Circuit. Now the twins have filed an appeal to have their case reheard by a full panel of judges for the 9th Circuit.
The case stems from a 2007 settlement agreement concerning the twins’ involvement with classmate Mark Zuckerberg. In 2003, they hired Zuckerberg to help them with their social networking site UConnect. In 2007, the twins and Zuckerberg, fully lawyered up, sat down and began negotiations for the sale of UConnect to Zuckerberg / Facebook. Ultimately, the twins agreed, during mediation, to get $20 million in cash and $45 million in stock.
The settlement gave them 1,253,326 shares of Facebook stocks valued at $35 per share.
The twins’ legal dispute claims that during the mediation Facebook allegedly committed securities by allegedly failing to disclose information about Facebook’s stock price. The twins claim that, had that information been disclosed, they would have received five million, not 1.2 million, shares.
“At some point, litigation must come to an end. That point has now been reached” wrote Chief Judge Alex Kosinski for the Court earlier this April. The twins are reportedly now represented by Jerome Falk of Howard Rice Nemerovski Canady Falk & Rabkin. Facebook is represented by E. Joshua Rosenkranz of Orrick, Herrington & Sutcliffe.
The twins’ pleading today reads that the “the opinion’s implication that Appellants should take the now more-valuable stock and stop complaining about Facebook’s blatant violation of Rule 10b-5 inappropriately minimizes federal securities laws that command honest dealing and full disclosure in the sale or exchange of securities.”
The twins’ appeal adds that whether they “would be better off financially keeping the proceeds of the settlement rather than rescinding and proceeding with their lawsuit against Facebook is a personal judgment for them — not an appellate court — to make.”
Facebook, Mark Zuckerberg