Winklevoss Twins Drop U.S. Supreme Court Appeal Over Facebook Dispute

Cameron and Tyler Winklevoss, former Harvard University classmates of Facebook Inc. founder Mark Zuckerberg, said they won’t ask the U.S. Supreme Court to undo a settlement of their claims that Zuckerberg stole the idea for the world’s most popular social-networking site.

The Winklevoss twins said last month they would appeal a lower-court ruling that left the 2008 accord intact. Their lawyers said in a filing yesterday at the U.S. Court of Appeals in San Francisco that “after careful consideration, they have determined that they will not file a petition” with the nation’s highest court.

The brothers lost a bid in May to get a full appeals court review. They argued that a three-judge panel erred in April when it dismissed their claims that the settlement should be voided because it was procured through fraud.

They alleged that Palo Alto, California-based Facebook didn’t disclose an accurate valuation of its shares before they agreed to the $65 million cash and stock settlement. The appeals court ruled that the accord barred future lawsuits and was “quite favorable” to the twins.

Andrew Noyes, a spokesman for Facebook, said yesterday “We’ve considered this case closed for a long time, and we’re pleased to see the other party now agrees.”

In a separate lawsuit in federal court in Boston, the Winklevoss twins are seeking to uncover whether Facebook and Zuckerberg “intentionally or inadvertently suppressed evidence,” according to a court filing in that case today. The complaint in Boston also claims Zuckerberg stole the brothers’ idea for Facebook.

Noyes didn’t immediately return an e-mail seeking comment on the Boston court filing.

The case is The Facebook Inc. v. ConnectU Inc., 08-16745, U.S. Court of Appeals for the Ninth Circuit (San Francisco).

To contact the reporter on this story: Joel Rosenblatt in San Francisco at jrosenblatt@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

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