Facebook CEO In Hot Water Again As He Faces Charges Of Securities Fraud
May 21, 2010
(ChattahBox) – Mark Zuckerberg, the co-founder of Facebook, is facing charges of security fraud, which is sure to round off the many troubles embroiling the young CEO.
The case involves the ConnectU settlement, where Facebook execs paid $65 million dollars in an out of court settlement after being accused of stealing the ConnectU source code.
The site was handed over to Zuckerberg as part of the settlement, but now the creators, Tyler and Cameron Wilkervoss, are claiming the site have underpaid them.
“The ConnectU cofounders are arguing that Facebook executives and lawyers presented the cash-and-stock 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,” VentureBeat explains.
“The settlement, however, was to be paid in common shares, not preferred shares, which Facebook itself valued at roughly 75 percent less for the purposes of calculating taxes on stock-based compensation — cutting the settlement’s offer roughly in half.”
And so continues a very long, very shady, court battle.