ConnectU founders appeal $65 million settlement with Facebook
After reaching a $65 million settlement with Facebook founder Mark Zuckerberg back in 2008, ConnectU founders Tyler and Cameron Winkelvoss are now appealing the settlement.
The twins agreed to a settlement in 2008 that got them $20 million in cash and $45 million in stock, valued at $36 per share. Now, the pair are alleging that they were misled about the real value of Facebook stock in 2008, and have brought the case to the Ninth Circuit Court of Appeals in San Francisco.
A skeptical three judge panel began considering today whether the Winkelvoss twins have a case. They scrutinized the argument put forward by the twins through attorney Jerome Falk. "The (ConnectU) founders are pretty smart people themselves, the twins also have a father from Wharton School who is very bright," Judge John Wallace said.
"If you have all these people to advise you, isn't it difficult to say this is one of those things where you were taken advantage of?"
Wallace was pointing out that the settlement was reached by teams of lawyers and a top mediator. The Winkelvoss brothers had valued the Facebook stock based on a news report that Microsoft had bought a small piece of the social networking site in a deal that valued the stock at around $36, and the company at $15 billion.

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