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Judge Rules ConnectU Must Honor Facebook Settlement

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A federal judge has ruled that ConnectU must honor a legal settlement with Facebook.

ConnectU founders had attempted to reopen the lawsuit after they said they found new evidence to support their case that

The ruling states both companies must appear in court on July 2 "to show cause why a judgment should not be entered ordering the parties to take the actions required of them in the Settlement Agreement."

Ware rejected ConnectU's allegations that Facebook had committed securities fraud in reaching the settlement. ConnectU claimed Facebook did not properly disclose a value of common stock that had been made to the company's board. Ware ruled that ConnectU failed to prove that Facebook had misrepresented the value of the stock.

Ware agreed with a Boston court's ruling that said ConnectU's attempt to back out of the settlement was "buyer's remorse."

A Facebook spokesperson sent Murdok a copy of the ruling along with a statement from the company.

"We are happy that Judge Ware enforced the agreement settling our dispute with the ConnectU founders.  ConnectU's founders were represented by six lawyers and a professor at Wharton Business School when they signed the Settlement Agreement.  The ConnectU founders understood the deal they made, and we are gratified that the Court rejected their false allegations of fraud."

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