Paul D. Ceglia, an alleged early investor in Facebook, filed a suit in the Supreme Court of New York's Allegany County on June 30, claiming that "a 2003 contract he signed with Facebook founder and Chief Executive Mark Zuckerberg entitles him to ownership of the company and monetary damages." But a New York judge has issued a temporary restraining order restricting the transfer of Facebook's assets.
"Ceglia claims he signed a contract with Mr. Zuckerberg on April 28, 2003, to develop and design a website, paying a $1,000 fee but getting a 50% stake in the product. The contract stipulated that Mr. Ceglia would get an additional 1% interest in the business for every day after Jan. 1, 2004, until it was completed."
Facebook said, "We believe this suit is completely frivolous and we'll fight it vigorously."