LOS ANGELES (LALATE) – The Winklevoss twins’ Facebook lawsuit was lost in the 9th Circuit this week. But the Winklevoss twins’ dispute with Facebook is far from over. In 2008, the Winklevoss twins sold to Facebook Connect U for reportedly $65 million which included cash and Facebook stock. The 9th Circuit claimed that that the twins were represented by nearly a half dozen lawyers during that sale. The twins’ then counsel Quinn Emanuel Urquhart & Sullivan was set to earn a $13 million contingency fee for their work. The twins claimed that, during those 2008 settlement negotiations, Facebook hid the true value of their shares. Since then, the twins have sought to get that 2008 settlement contract rescinded.
The twins are now represented by Jerome Falk of Howard Rice Nemerovski Canady Falk & Rabkin. Facebook is represented by E. Joshua Rosenkranz of Orrick, Herrington & Sutcliffe.
On Monday, the Ninth Circuit ruled against the twins, asking for litigation about the matter to end. “At some point, litigation must come to an end. That point has now been reached” wrote Chief Judge Alex Kosinski for the Court on Monday.
“With the help of a team of lawyers and a financial advisor, they made a deal that appears quite favorable in light of recent market activity,” the Court held. “For whatever reason, they now want to back out. Like the district court, we see no basis for allowing them to do so.”
Falk disagreed. He issued the following statement to news yesterday. “In my judgment, the opinion raises extremely significant questions of federal law that merit review by the entire Ninth Circuit Court of Appeals.” Falk added “For that reason, my colleagues and I will file a Petition For Rehearing En Banc within the next fifteen days.”
And how about $13 million contingency fee? Reportedly, San Jose federal district court judge James Ware had ruled the fee remain in an escrow account pending the 9th Circuit’s decision.