The Entire Winklevoss-Facebook Legal Drama Explained In 100 Words

Winklevosses Cheeks

Facebook and the infamous Winklevoss twins are back in court today.

Confused? Thought this thing was over already?

Here’s a ~100 word summary of how we got here:

The Winklevosses hired Zuckerberg to create a site. Zuckerberg stalled, and built Facebook instead.

The Winklevosses sued.

All parties settled and agreed the Winklevosses would get 1.25 million Facebook shares and $20 million cash.

The Winklevosses thought they were getting stock worth $35.90/share, because that’s what Microsoft paid for 1.6% of Facebook.

But Microsoft bought preferred shares.  The Winklevosses got common stock, valued at $8.88 per share.

The Winklevosses say Facebook did not make this distinction clear.

Facebook says the Winklevosses should have asked.

Now the Winklevosses want a San Francisco appeals court to do undo the settlement.

Today, Facebook lawyers will ask the appeals court to throw out the case.

So now what?

IF FACEBOOK WINS: The Winklevosses will walk away with Facebook stock worth between $30 million and $82 million, as well as $20 million cash.

IF THE WINKLEVOSSES WIN: The court will throw out the settlement and we’re back to square one.

Required reading:

  • At Last — The Full Story Of How Facebook Was Founded
  • How Mark Zuckerberg Hacked The Harvard Crimson Using Data From
  • The 10 Most Glaring Lies In “The Social Network
  • The Facebook Movie Is An Act Of Cold-Blooded Revenge – New, Unpublished IMs Tell The Real Story
  • Don’t Miss: Our Exclusive Interview With Mark Zuckerberg (Before The Social Network When He Was Almost Famous)
  • The story about how Mark Zuckerberg vandalised the Winklevosses’ social network, ConnectU