Facebook And ConnectU Reach Settlement

    April 8, 2008

As with most legal battles, the ConnectU suit against Facebook has begun to drag out: first filed in September 2004, the legal battle over who originally created the source code for Facebook is still ongoing. Last July, a Massachusetts Federal judge ruled that ConnectU needed concrete evidence to bring their suit. It looked like the suit would die after the ruling stated that “claims must have a factual basis.”

But that’s not how our wonderful legal system works in the United States. The suit was once again opened after a circuit court judge granted ConnectU the right to file an appeal last Thursday. CNET reports:

“We hold that the jurisdictional claim in the amended complaint warrants full consideration and constitutes a viable hook on which federal jurisdiction can be hung,” the court document read. “Because this holding is at odds with the conclusions reached by the court below, we reverse the order of dismissal and remand for further proceedings consistent with this opinion.”

Today, the New York Times Bits blog reported that Facebook and ConnectU reached a settlement for an undisclosed amount. Additionally, “the person briefed on the status of the negotiations said motions to dismiss the cases were expected to be filed ‘within weeks.’”

Despite the fact that the case has essentially been reopened, it’s not entirely clear why Facebook would choose to make a deal now, after three and a half years of the lawsuit. Why do you think Facebook chose to do this now?