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Paul D. Ceglia filed suit against us and Mark Zuckerberg on or about June 30, 2010, in the Supreme Court of the State of New York for the County of Allegheny claiming substantial ownership of our company based on a purported contract between Mr. Ceglia and Mr. Zuckerberg allegedly entered into in April 2003. We removed the case to the U.S. District Court for the Western District of New York, where the case is now pending. In his first amended complaint, filed on April 11, 2011, Mr. Ceglia revised his claims to include an alleged partnership with Mr. Zuckerberg, he revised his claims for relief to seek a substantial share of Mr. Zuckerberg’s ownership in us, and he included quotations from supposed emails that he claims to have exchanged with Mr. Zuckerberg in 2003 and 2004. On June 2, 2011, we filed a motion for expedited discovery based on evidence we submitted to the court showing that the alleged contract and emails upon which Mr. Ceglia bases his complaint are fraudulent. On July 1, 2011, the court granted our motion and ordered Mr. Ceglia to produce, among other things, all hard copy and electronic versions of the purported contract and emails. On January 10, 2012, the court granted our request for sanctions against Mr. Ceglia for his delay in compliance with that order. We continue to believe that Mr. Ceglia is attempting to perpetrate a fraud on the court and we intend to continue to defend the case vigorously.
Facebook wants Paul Ceglia to pay more than $84,000 in attorney fees
January 20, 2012 | 5:36 pm
Facebook's lawyers are asking a judge to order Paul Ceglia to foot the bill for more than $84,000 in fees.
Ceglia, the New York man who claims he's entitled to half of Mark Zuckerberg's multibillion-dollar stake in Facebook, was fined for refusing to turn over email account information and ordered to pay reasonable attorneys' fees.
Facebook's lawyers are also asking Leslie G. Foschio, the federal magistrate in Buffalo, N.Y., to order Ceglia not to file any additional "non-responsive papers or pleadings in the case" until he pays up.
Ceglia's lawyer, Dean Boland, said he has not had a chance to review the court filing in detail, but said he and his client would prepare a response over the coming week.
"If we feel it ought to be modified, we will respond accordingly," Boland said.
Boland, who's from Cleveland, took a shot at Facebook's lawyers for charging Manhattan hourly rates in a case unfolding in Buffalo.
"Cleveland and Buffalo are pretty identical demographically, and I can tell you that no lawyer would survive in the city of Cleveland charging that much an hour because no one would be able to hire him," Boland said.
Orin Snyder, the most senior Gibson Dunn partner, charged $716.25 an hour. His most junior associate charged $337.50 an hour, according to the filing.
Facebook, which is on the verge of an initial public offering that could value the world's most popular social networking company at $100 billion, can clearly afford it.