Snapchat has settled a lawsuit filed by its ousted co-founder, Reggie Brown, who claimed he came up with the idea for disappearing photos but was pushed out and not given equity.
The lawsuit has been going on for a year and a half, and the two parties have tried to settle multiple times before.
The terms of the settlement have not been disclosed, but Brown was seeking an extraordinary amount in damages (think upwards of $US500 million). Snapchat co-founder Evan Spiegel previously stated in a deposition that Brown may deserve” something” for some of his early work on Snapchat.
Brown, meanwhile, had a hard time finding a job after graduating from Stanford and sued his co-founders after Snapchat raised more than $US12 million, according to depositions in the case.
Here’s the full background on the lawsuit.
Here’s the settlement press release, below:
LOS ANGELES–(BUSINESS WIRE)–Frank Reginald (“Reggie”) Brown, IV, and Snapchat, Inc., along with its CEO, Evan Spiegel, and CTO, Robert Murphy, announced today that they have settled their dispute over Mr. Brown’s claim of an ownership interest in Snapchat on mutually agreeable terms. The settlement resolves Brown’s suit filed in the Superior Court of Los Angeles, as well as all other disputes between the parties. The terms of the settlement are confidential.
Reggie Brown originally came up with the idea of creating an application for sending disappearing picture messages while he was a student at Stanford University. He then collaborated with Spiegel and Murphy on the development of Snapchat during its early and most formative days.
Discussing the settlement, Spiegel said, “We are pleased that we have been able to resolve this matter in a manner that is satisfactory to Mr. Brown and the Company. We acknowledge Reggie’s contribution to the creation of Snapchat and appreciate his work in getting the application off the ground.”