New material for a Social Network movie sequel?

Warning: If you haven’t seen the movie The Social Network yet and you want to, you may not want to read the following.

In the movie, Mark Zuckerberg was asked by two former Harvard classmates – twins Cameron and Tyler Winklevoss – to create a social web site for them to be used by Harvard students. The movie shows the twins giving Zuckerberg what they’d like to see on the site. But Zuckerberg had batter ideas and over a period of time, he created The Facebook [the “The” was later dropped from the name] while not doing any work for the twins.

The twins took Zuckerberg to court [one of two law issues at the same time] asking for compensation as Facebook was slowly building steam. The twins have now changed their mind about a $65 million settlement from Facebook in 2008 and have asked an appeals court to void it, arguing that Facebook didn’t disclose an accurate valuation of its shares before agreeing to pay them $65 million in stock and cash. In the same year, a lower court ruled the accord was binding.

The lawyer representing the Winklevoss brothers says that the lawyers on both sides of the original settlement “made a mistake” with the settlement, noting that the transaction had “business issues that needed to be addressed and weren’t. He argued that the settlement should be worth more now that Facebook has received a $450 million investment from Goldman Sachs. Facebook has argued that the settlement is enforceable and that the Winklevosses are suffering from “settlers’ remorse..”

The twins only case was whether the company was worth more in 2008 than the agreement said – not today. There is no way to know how a company will do in 3 years’ time. They actually got more out of it as part of the settlement included stock – unless they were dumb enough to sell them

So would the twins be going after Zuckerberg if Facebook was losing money? Nope. Facebook of 2011 doesn’t look like anything of the Facebook of 2006 or 2007 [I’ll assume when the lawsuit first showed up]. Zuckerberg has poured money into the web site while the twins did nothing. They waited until the recent purchase by Goldman Sachs to try and reopen the settlement.

I’m no lawyers, but it doesn’t look like this settlement will be reopened. The Winklevoss lawyer said lawyers from both sides made a mistake. In fact it was him [or the lawyers who represented the twins] and the twins who made the mistake. Maybe the Winklevoss loss all the money they got and want more.

If somehow a judge opens this settlement again, this could open a whole can of worms. Think of all the other settlements that could be reopened. Look at all the ex-wives of Larry King who could ask to have their divorce settlement be reopened.


About ebraiter
computer guy

One Response to New material for a Social Network movie sequel?

  1. ebraiter says:

    Speaking of material, Zuckerberg’s Facebook fan page was recently hacked. Lack of security somewhere…

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