Facebook funds frozen

Facebook has had is assets frozen by a New York Court after a web designer filed a lawsuit claiming he owns 84 per cent of the company.

New Yoiker Paul Ceglia went to the Supreme Court of Allegany County with piece of paper in his pocket which was apparently signed in April 2003 by Facebook founder Mark Zuckerberg.

The contract thereon details a deal in which Zuckerberg hands over 50 per cent of The Face Book in exchange for Cegila designing it for him.

As if that wasn't enough: "Under Paragraph 3 of the contract, the Seller and Purchaser agreed that for each day after January 1, 2004, the Purchaser would acquire an additional 1 percent interest (in the business), per day, until the website was completed," the lawsuit reads.

Citing this clause, Ceglia reckons he's entitled to an additional 34 percent stake in the company, bringing his total claim to 84 percent.

Facebook branded Ceglia's lawsuit frivolous and reckons in any case its statute of limitations has run out. "We believe this suit is completely frivolous and we will fight it vigorously," Facebook spokesman Barry Schnitt in a statement.

Facebook is commonly estimated to be worth $6.5 billion, which is thought to make Zuckerberg worth about $4 billion.

The bloke famously started a Facebook-alike at Harvard and there is a growing queue of people who claim to have been ripped off by him along the way.

The CEO has also been accused of securities fraud by former Harvard chums the Winklevoss twins in a case that is still pending.