Transfer of Facebook Assets Restricted Following Suit by NY Man

A New York judge has issued a temporary restraining order restricting the transfer of Facebook Inc.'s assets, following a suit by a New York man who claims to own an 84% stake in the social-networking company.

Photo: Transfer of Facebook Assets Restricted Following Suit by NY Man

Paul D. Ceglia 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, Wall Street Journal says.

The terms of the contract entitled Ceglia to a $1,000 fee (£665) and a 50 percent stake in the product, which eventually was launched as thefacebook.com, according to the lawsuit.

The contract also stipulated that Ceglia "would acquire an additional 1 percent interest in the business, per day, until the website was completed," and the suit said that by February 4, 2004, Ceglia's stake in Facebook totalled 84 percent, Reuters reports.