Facebook's month just keeps getting worse. First the public outcry and government response over the social-networking site's privacy practices, then an "all-hands" meeting to hash out new user privacy strategies, and now the infamous lawsuit brought by ConnectU founders rears its ugly head again -- this time with securities fraud allegations against CEO Mark Zuckerberg.
VentureBeat reported Wednesday an appeal filed by ConnectU founders in the U.S. Court of Appeals for the Ninth Circuit argues that
Facebook executives and lawyers presented the cash-and-stock [settlement] offer's value as $65 million, relying on a valuation of $15 billion that Microsoft paid in 2007 when buying preferred shares in the company. The settlement, however, was to be paid in common shares, not preferred shares...cutting the settlement's offer roughly in half.
Writer Owen Thomas points out that Facebook's legal team should have made quick work of this lawsuit, which has lingered since the parties' days at Harvard.