14 DAY TRIAL // The Winklevoss twins have been unsuccessful in convincing a panel of judges that their original settlement with Facebook should be challenged since the company was allegedly undervalued when they made the deal.
The judges disagreed and said that the settlement stands and they must make do with the $65-million worth of shares, that are now valued at $100 million, which they agreed to in the first place.
The twins had sued Facebook and Mark Zuckerberg for 'stealing' their idea of an university-based social network and then launching The Facebook, while stalling their own project which Zuckerberg signed up to code for.
'Stealing' ideas is not illegal, but Facebook decided to settle with the Winklevoss and end litigation in 2008.
At the time they were granted $20 million in cash as well as shares in Facebook. Those shares were estimated to be worth about $65 million then.
Soon after that, though, the twins filed to have the settlement annulled claiming that Facebook hid details from them which made them undervalue the company. The judges would have nothing of it.
"The Winklevosses are sophisticated parties who were locked in a contentious struggle over ownership rights in one of the world’s fastest-growing companies," Chief Judge Alex Kozinski wrote.
"They engaged in discovery, which gave them access to a good deal of information about their opponents. They brought half-a-dozen lawyers to the mediation," he added.
"Howard Winklevoss--father of Cameron and Tyler, former accounting professor at Wharton School of Business and an expert in valuation--also participated," he continued.
The judge continued by saying that the settlement is more than satisfying and even indicated that, had the case gone through, the Winklevoss may not have won.
"At some point, litigation must come to an end. That point has now been reached," Kozinski said. The Winklevoss twins however are looking to challenge this decision as well and are seeking a rehearing with an "en banc" panel of 11 judges. The only other option would be to go to the US Supreme Court.