Facebook hit with a restraining order

A New York court blocks the social networking site from transferring assets after a man claims he owns 84% of the company.

Posted by Elizabeth Strott on Tuesday, July 13, 2010 12:11 PM

A New York judge issued a temporary restraining order against the social networking site Facebook after a New York man sued the company, claiming he owns an 84% stake in it.

Paul 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.

Ceglia claims that he signed a contract with Zuckerberg on April 28, 2003, and that he paid $1,000 to develop and design a Web site in exchange for a 50% stake in the product.