Facebook CEO Accused Of Perpetrating FraudMay 21st, 2010 - 10:45 pm ICT by Pen Men At Work
May 21, 2010 9Pen Men at Work): The massively popular social networking website, Facebook, now has another accusation to sort out. As it is, Facebook has, of late, been encountering harmful publicity over safety issues. Now, the unpleasant accusation that Facebook has to face is that Mark Zuckerberg, the CEO of Facebook, has been accused of committing fraud by his former Harvard schoolmates, Divya Narendra, and Cameron and Tyler Winklevoss.
In keeping with them, Zuckerberg and the other Facebook managers deceived them into a supposed $65 million cash-and-stock agreement that was later discovered to be worth far less. They mentioned that they had hired Zuckerberg to lend a hand to them on their social network, ConnectU. However, in line with them, Zuckerberg deliberately deferred the project and utilized the code to initiate his own initiative that he then referred to as The Facebook.
They arrived at a provisional settlement of $65 million subsequent to years of lawsuits. Nonetheless, the ConnectU team divulged that the agreement was never firmed up. The accusers are now contending that the judge functioned inappropriately in permitting the settlement to carry on, and in granting possession of their social network, ConnectU, to Facebook.
The co-founders of ConnectU have articulated that the settlement was to be paid in common shares rather than preferred shares. The values of shares were anchored in Microsoft’s purchase in 2007 of $15 billion of preferred shares.
If convicted, Zuckerberg, 26, may have to live with a prison term due to these accusations.
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Tags: accusation, accusations, cameron, common shares, connectu, divulged, facebook, founders, lawsuits, mark zuckerberg, men at work, narendra, networking website, preferred shares, prison term, publicity, safety issues, schoolmates, social networking, tyler winklevoss