Facebook Inc. Chief Executive Mark Zuckerberg says a lawsuit by a man who claims to own a huge chunk of the popular social networking site is seeking to uncover needless details about his private life.
Zuckerberg is fighting a civil lawsuit filed by Paul Ceglia, who claims an 84 percent stake in the privately held company, believed to be worth several billion dollars.
Ceglia, an owner of a wood pellet fuel company who lives in Wellsville, N.Y., is trying to return the case to a New York state court, after Zuckerberg moved it to federal court.
“They filed this remand motion to harass defendants under the pretext of obtaining jurisdictional discovery into Zuckerberg’s private life,” lawyers for Zuckerberg said in a Monday filing in the federal court in Buffalo, N.Y.
Ceglia alleged in a June 30 lawsuit that a 2003 contract with Zuckerberg entitles him to control of Facebook. Forbes magazine in March estimated Zuckerberg is worth $4 billion.
Federal courts can hear cases from parties in different states. Zuckerberg, 26, considers himself a California resident, while Ceglia said both are New Yorkers.
“The higher the stakes, the more likely you want to take advantage of procedural moves to improve your chances of winning, or settling on the most favorable terms,” said Adam Steinman, a professor at Seton Hall University School of Law in Newark, N.J.
Steinman said “conventional wisdom” is often that defendants prefer federal court to state court, because cases might be dismissed faster or less likely to reach juries. “There could also be a ‘home-field’ advantage if a state judge were more sympathetic to a local plaintiff,” he said.
It is unclear what details Ceglia hopes to uncover, or Zuckerberg wants kept private.
Zuckerberg, a Dobbs Ferry, N.Y. native, launched Facebook in February 2004 as a Harvard University sophomore. He dropped out after that year and moved to California.
Now based in Palo Alto, Calif., Facebook said it has more than 500 million users and 1,600 employees.
Terry Connors, a partner at Connors & Vilardo LLP in Buffalo who represents Ceglia, said he expects to respond to Zuckerberg’s allegations in a court filing within two weeks.
A lawyer for Facebook referred a call to an outside spokesman, who did not immediately return a call for comment.
In June, Zuckerberg said he had no date to take Facebook public. The next month, he told ABC News he was “quite sure” there was no contract ceding Facebook ownership rights.
A hearing on Ceglia’s lawsuit is set for Oct. 13.
The case is Ceglia v. Zuckerberg et al, U.S. District Court, Western District of New York, No. 10-00569.
