The 9th U.S. Circuit Court of Appeals ruled that former Harvard University schoolmates of the founder of Facebook, Mark Zuckerberg can't undo their settlement over creation of the social networking site. Tyler & Cameron Winklevoss were savvy enough to understand what they were agreeing to when they signed the agreement in 2008, which is a deal of $20 million cash payment and a partial ownership of Facebook. A third classmate, Divya Narendra, was part of the settlement with the twins but did not pursue the second lawsuit seeking to undo the agreement.
The twins alleged they were misled into believing the company was worth $35.90 a share because of an investment by Microsoft Corp. But they argued that the company later valued the company at $8.88 for tax purposes. The twins argue they would have demanded more stock in the company based on the lower valuation.
Lawyers for the Winklevoss twins said they are reviewing the decision and have not decided on their next step. The twins could ask the Supreme Court to consider the case.
