The Wall Street Journal
A temporary restraining order against transfer of assets by Facebook Inc. will expire on Friday, parties in a lawsuit involving the company said, after a federal judge held a hearing on the matter.
Earlier this month, a New York state judge issued the order following a suit against the social-networking giant by Paul D. Ceglia, who claims Facebook Chief Executive Mark Zuckerberg breached a contract giving him an 84% stake in the company. The order, sought by Mr. Ceglia, barred Mr. Zuckerberg and Facebook from transactions selling or transferring money or any other company assets.
Facebook attorneys moved to have the case heard in federal court in Buffalo, N.Y., and to have the temporary restraining order lifted.
It's unclear what, if any, transactions might have been impacted by the order. Even though Facebook is a private company, shares in it change hands in an active secondary market.
Before U.S. District Judge Richard J. Arcara ruled during a hearing on Tuesday, the parties went into another room where they agreed with each other to let the order expire and set a timeline to move forward with the case.
"We all agreed that there are other more pressing issues to litigate than these provisional remedies," said Mr. Ceglia's lawyer Terrence M. Connors.
In a statement, a Facebook spokesman said, "We are pleased that the court's decision to stay the TRO remains in place and will continue to fight this frivolous claim."
During the hearing, Judge Arcara asked a lawyer for Facebook if the 2003 contract submitted by Mr. Ceglia had been signed by Zuckerberg. Facebook's corporate lawyer Lisa Simpson said she was "unsure."
The Facebook spokesman said the company's intention with that response was "to indicate that plaintiff has not produced the original of the alleged agreement for anyone, including the court," he said. "We have serious questions about the authenticity of the document and, assuming an original exists, we look forward to expressing our opinion about it once we see it."
Earlier this month, a New York state judge issued the order following a suit against the social-networking giant by Paul D. Ceglia, who claims Facebook Chief Executive Mark Zuckerberg breached a contract giving him an 84% stake in the company. The order, sought by Mr. Ceglia, barred Mr. Zuckerberg and Facebook from transactions selling or transferring money or any other company assets.
Facebook attorneys moved to have the case heard in federal court in Buffalo, N.Y., and to have the temporary restraining order lifted.
It's unclear what, if any, transactions might have been impacted by the order. Even though Facebook is a private company, shares in it change hands in an active secondary market.
Before U.S. District Judge Richard J. Arcara ruled during a hearing on Tuesday, the parties went into another room where they agreed with each other to let the order expire and set a timeline to move forward with the case.
"We all agreed that there are other more pressing issues to litigate than these provisional remedies," said Mr. Ceglia's lawyer Terrence M. Connors.
In a statement, a Facebook spokesman said, "We are pleased that the court's decision to stay the TRO remains in place and will continue to fight this frivolous claim."
During the hearing, Judge Arcara asked a lawyer for Facebook if the 2003 contract submitted by Mr. Ceglia had been signed by Zuckerberg. Facebook's corporate lawyer Lisa Simpson said she was "unsure."
The Facebook spokesman said the company's intention with that response was "to indicate that plaintiff has not produced the original of the alleged agreement for anyone, including the court," he said. "We have serious questions about the authenticity of the document and, assuming an original exists, we look forward to expressing our opinion about it once we see it."
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