Federal Judge Dismisses Ceglia Case Against Facebook

Manhattan court federal judge dismissed a case filed by  a New York businessman Paul Ceglia  on Facebook  corporation and its founder Mark Zuckerberg, adopting findings by a magisrate judge that a contract entitling him to an ownership stake in the company was fake, according to court documents.

According to the Ceglia’s 2010 lawsuit against Facebook and Zuckerberg underlay a subsequent federal prosecution in Manhattan, in which Ceglia was accused of forging a 2003 contract with Zuckerberg that supposedly entitled him to a part-ownership interest in the social networking company.

Zuckerberg replies Facebook argued that the only contract between the two companies was related to Ceglia’s company, StreetFax.com, and accused Ceglia of faking various documents as part of his lawsuit.  Zuckerberg had previously done some programming work for StreetFax.com.

Ceglia’s lawsuit  dismissed by U.S. District Judge Richard Arcara in Buffalo, New York on 25 march 2014, and reports  that the deal  was a “fabrication” and alternatively due to evidence spoliation.

Federal Judge Dismisses Ceglia Case Against Facebook

Colin Stretch, Facebook’s general counsel says Reuters in an e-mail. Which is ruling vindicates what we have said from the outset: this case is a fraud.

Finally the judge in Manhattan court found that while the two companies agreed a sign on a contract, any consultation to Facebook had been added later. He pointed to a copy of the original April 28, 2003, contract discovered on a hard drive as the lawsuit was being argued. Ceglia had emailed it to an attorney in March 2004, years before his lawsuit against Facebook and Zuckerberg.

According to the reports Foschio’s 155-page, Recommendations goes to a district judge, who will consider any objections before either adopting or modifying the decision. Federal judge in Manhattan refused to dismiss an indictment charging Ceglia with mail and wire fraud.

A federal indictment out of New York City in November charged Ceglia with mail and wire fraud after an investigation by the U.S. Postal Inspection Service alleged Ceglia doctored, fabricated and destroyed evidence to support the claims in his 2010 lawsuit.

At the time of incident Ceglia Civil lawyers and criminal defense lawyers were not available for comment.

If convicted, Ceglia could face up to 40 years in prison and Zuckerberg is worth an estimated $13.3 billion.

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