Mark Elliot Zuckerberg

• Paul Ceglia
On June 30, 2010, Paul Ceglia, the owner of a wood pellet fuel company in Allegany County, upstate New York, filed a lawsuit against Zuckerberg, claiming 84% ownership of Facebook and seeking monetary damages. According to Ceglia, he and Zuckerberg signed a contract on April 28, 2003 that an initial fee of $1,000 entitled Ceglia to 50% of the website's revenue, as well as an additional 1% interest in the business per day after January 1, 2004, until website completion. Zuckerberg was developing other projects at the time, among which was Facemash, the predecessor of Facebook, but did not register the domain name thefacebook.com until January 1, 2004. Facebook management dismissed the lawsuit as "completely frivolous". Facebook spokesman Barry Schnitt told a reporter that Ceglia's counsel had unsuccessfully sought an out-of-court settlement.
The contract itself says that Ceglia agreed to pay Zuckerberg $1,000 for StreetFax and $1,000 for another project called PageBook. The contract also mentions an expanded project called The Face Book to be completed by January 2004, saying “an additional 1% interest in the business will be due the buyer for each day the website is delayed from that date”. Ceglia has proffered a $1,000 receipt from his checkbook, dated six months after the contract as evidence that he paid Zuckerberg for his work. But it wasn't the full $2,000 amount, and the agreement doesn’t describe what happens if there is a default.
In an interview with ABC World News, Zuckerberg stated he was confident he had never signed such an agreement. At the time, Zuckerberg worked for Ceglia as a code developer on a project named "StreetFax". Judge Thomas Brown issued a restraining order on all financial transfers concerning ownership of Facebook until further notice; in response, Facebook removed the case to federal court and asked that the state court injunction be dissolved. According to Facebook, the injunction would not affect their business and lacked any legal basis.