Winklevoss Twins Taking Facebook Case To The Supreme Court

The Ninth Circuit Court of Appeals denied Tyler and Cameron Winklevoss’ request for rehearing their high-profile lawsuit against Facebook and Facebook CEO Mark Zuckerberg. Howard Rice, the lawyer for the twins, said that they intend to petition the lawsuit to the U.S. Supreme Court. Rice, the Winklevoss twins, and Divya Narenda want to invalidate a previous multi-million settlement due to suspicion for not receiving the true valuation of the social networking company at the time of the settlement. Below is a press release about the lawsuit:

Howard Rice Clients Cameron and Tyler Winklevoss and Divya Narendra To Seek U.S. Supreme Court Review

SAN FRANCISCO, CA – May 16, 2011 – After the Ninth Circuit today denied rehearing en banc in the ongoing dispute, the law firm of Howard Rice announced that its clients, Cameron and Tyler Winklevoss and Divya Narendra, intend to file a Petition for Certiorari with the United States Supreme Court in the ongoing dispute with Facebook and Mark Zuckerberg.

Lead appellate attorney Jerome B. Falk, Jr., said, “The Ninth Circuit’s opinion creates a conflict between Ninth Circuit precedent and the decisions of other federal courts on two issues.

The first is the Court’s holding that a party who is defrauded into entering into a settlement agreement cannot challenge the contract on the ground of fraud. Federal and state courts have long held that a settlement founded on fraud must be set aside. The Court’s decision conflicts with that body of precedent.

The second issue is the Court’s holding that a routine agreement to hold statements made in a mediation confidential bars proof that Facebook committed securities fraud in the mediation. Numerous federal precedents, and the text of the 1934 Securities Exchange Act, hold that an agreement to directly or indirectly waive rights under federal antifraud provisions of the securities laws is void. The Panel’s decision conflicts with that body of precedent.”

Settlements should be based on honest dealing, and courts have wisely refused to enforce a settlement obtained by fraudulent means. The Court’s decision shut the courthouse door to a solid claim that Facebook obtained this settlement by committing securities fraud. Our Petition to the Supreme Court will ask the high court to decide whether that door should be reopened.”

The Howard Rice team includes Jerome B. Falk, Jr., Sean M. SeLegue, Shaudy Danaye-Elmi and Noah S. Rosenthal.

[AllThingsD]

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