The Winklevoss twins aren't done with Facebook. On Wednesday, they filed a document stating that they will not appeal a decision against them rendered by a California court, which seemed to indicate they're abandoning their Facebook lawsuit.
However, on Thursday, they filed a document in Boston to initiate a new lawsuit in Boston federal courts.
Both the California and Boston lawsuits are seeking to undo and get more money than the $65 million settlement the Winklevoss twins and Facebook reached in 2008.
The argument for the California case was that Facebook failed to disclose its shares' true value. The argument for the Boston case is that Facebook should have disclosed during the settlment the communications Mark Zuckerberg had with his associates back in 2003 and 2004 that pertained to the Winklevoss twins.
These conversations suggest that Zuckerberg intentionally delayed his work for the Winklevoss twins' social networking site, ConnectU, in order to launch Facebook first.
In one conversation with a friend, Zuckerberg said he was going to f**** the twins' social networking site. In another, he said the twins made a mistake in hiring him because he was delaying it so it won't be ready until after the face book thing comes out.
As such, the Winklevoss twins will presumably argue that their 2008 settlement was invalid and that they should receive more money.
Zuckerberg's business relationship with the twins began when the twins hired him to code the predecessor to ConnectU. Soon after Zuckerberg launched Facebook, the Winklevoss twins accused him of stealing their idea and breaching his contract with them.
They sued in 2004. In 2008, they and Facebook settled the lawsuit. In the settlement, the twins received $65 million, $20 million in cash and $45 million in stocks. Due to the appreciation of Facebook (private) shares, their stake is worth hundreds of millions of dollars in 2011.
Months after the 2008 settlement, the Winklevoss twins sued Facebook in California courts to get more money. They accused Facebook of misrepresenting the value of Facebook shares. This argument, however, has failed in courts and the twins have decided to give up on it.
Instead, they're taking it up in Boston under the new grounds that Zuckerberg failed to disclose his conversations with his associates in 2003 and 2004 during the 2008 settlement process.
The California judge that ruled against the twins, however, had some harsh words for them in his decision.
He said: the Winklevosses are not the first parties bested by a competitor who then seek to gain through litigation what they were unable to achieve in the marketplace.
He also said: They made a deal that appears quite favorable in light of recent market activity. At some point, litigation must come to an end. That point has now been reached.
Below are some of the leaked conversations Zuckerberg had with his associates back in 2003 and 2004 (via Business Insider):
Check this site out: www.harvardconnection.com and then go to harvardconnection.com/datehome.php. Someone is already trying to make a dating site. But they made a mistake haha. They asked me to make it for them. So I'm like delaying it so it won't be ready until after the facebook thing comes out.
Zuck: So you know how I'm making that dating site
Zuck: I wonder how similar that is to the Facebook thing
Zuck: Because they're probably going to be released around the same time
Zuck: Unless I fuck the dating site people over and quit on them right before I told them I'd have it done.
Zuck: Like I don't think people would sign up for the facebook thing if they knew it was for dating
Zuck: and I think people are skeptical about joining dating things too.
Zuck: But the guy doing the dating thing is going to promote it pretty well.
Zuck: I wonder what the ideal solution is.
Zuck: I think the Facebook thing by itself would draw many people, unless it were released at the same time as the dating thing.
Zuck: In which case both things would cancel each other out and nothing would win. Any ideas? Like is there a good way to consolidate the two.
D'Angelo: We could make it into a whole network like a friendster. haha. Stanford has something like that internally
Zuck: Well I was thinking of doing that for the facebook. The only thing that's different about theirs is that you like request dates with people or connections with the facebook you don't do that via the system.
Zuck: I also hate the fact that I'm doing it for other people haha. Like I hate working under other people. I feel like the right thing to do is finish the facebook and wait until the last day before I'm supposed to have their thing ready and then be like look yours isn't as good as this so if you want to join mine you can...otherwise I can help you with yours later. Or do you think that's too dick?
D'Angelo: I think you should just ditch them
Zuck: The thing is they have a programmer who could finish their thing and they have money to pour into advertising and stuff. Oh wait I have money too. My friend who wants to sponsor this is head of the investment society. Apparently insider trading isn't illegal in Brazil so he's rich lol.
Friend: So have you decided what you're going to do about the websites?
Zuck: Yeah, I'm going to fuck them
Zuck: Probably in the year