ConnectU Now Owes Former Lawyers $13 Million For Facebook Case
A judge in New York upheld a payout of $13 million for law firm Quinn Emanuel. Quinn Emanuel represented ConnectU in an I.P. litigation case against Facebook.
ConnectU is a company that was founded by Tyler Winklevoss, Cameron Winklevoss, and Divya Narendra. ConnectU is challenging a $65 million settlement that they made with Facebook. The idea behind ConnectU was copied by Mark Zuckerberg when he was a sophomore at Harvard University several years ago to create Facebook.
The lawsuit was filed against Facebook in 2004 and the settlement agreement for both cases was reached in February 2008 valued at $65 million. This past May, ConnectU accused Facebook of securities fraud based on the value of the stock that was part of the settlement. The Winklevoss twins and Darenda pushed to get the settlement undone.
Quinn Emanuel did not want to wait for their part of the settlement deal, which was 20% of the settlement fee as part of a contingency agreement. ConnectU ended up firing Quinn Emanuel and sued the law firm of malpractice for failing to obtain recent Facebook valuations of common stock before negotiating the settlement.
Quinn Emanuel “earned its full contingency fee” on August 25, 2010 according to an arbitration panel. The arbitration panel also decided that the firm did not commit any malpractice.
“The respondents have waited over two years for its fee, and have had to oppose several attempts to delay the payment,” stated Judge Richard Lowe of the Supreme Court of the State of New York. “To continue to stall payment of the award would be to frustrate the very purpose of and reason for the arbitration.”@amitchowdhry or on Google+ at +AmitChowdhry