A member of Facebook's legal team has said they are unsure as to the veracity of a legal contract that may hand over control of the world's biggest social networking company to an unknown New Yorker.

Facebook has had its assets frozen after a court judgment over a contract allegedly signed by Mark Zuckerberg giving control of at least half of the company to a New Yorker Paul Ceglia, who claims that he was promised half the company and may own over 80 per cent of the stock, currently valued at over $10bn.

"Whether he signed this piece of paper, we're unsure at this moment," Facebook lawyer Lisa Simpson said, according to a Bloomberg report. "Mr Zuckerberg did have a contract with Mr Ceglia."
 
Zuckerberg, 26, worked for Ceglia as a computer coder, she added.

Ceglia doesn't have the finest reputation but this admission from Facebook's legal team may be a sign that the company might be willing to settle. While there seems little doubt that Zuckerberg built the social networking site to the powerhouse it is today with no input from Ceglia, the American legal system could mean the company may have to make a substantial payout.

21 Jul 2010