A Story of Friendship and Deceit

On Election Day, it was certainly possible to see democracy working, and you didn’t even have to leave your house to do so. All you had to do was log onto your Facebook and check out your news feed  You would most likely see a vast amount of updates from your friends telling you that they voted and you should do the same. You could even mark that you voted through an app, telling you who else among your friends did the same. This is just another example of how Facebook has made our world smaller. As Facebook just reached a billion users and is becoming more prevalent in our lives, one cannot help but muse about what Eduardo Saverin thinks about it. His story is one that ended with a meeting with a civil litigation lawyer in California.

                                          License: Creative Commons image source

The Origin

The story of Facebook became famous after The Social Network made its arrival to theaters two years ago. Based off Ben Mezrich’s book, The Accidental Billionaires, The Social Network tells the story of the origin of Facebook and the falling out between two friends, Mark Zuckerburg and Eduardo Saverin. Zuckerburg and Saverin were business partners – Mark was in charge of the technical side of Facebook and Saverin was the money man, financing the company and in charge of getting new leads. However, as with what happens with many companies, things change, new people are introduced and problems arise.

                                       License: Creative Commons image source

The Dispute

In Saverin’s case, he is pushed out by Zuckerburg and Sean Parker, the digital media wunderkind who created Napster. Saverin, unbeknownst to him, signs a contract that basically seals his death. He has a variable stake in the company, which means as more investors come on board, shares of ownership can be taken from his stake. In the end, when Zuckerburg, Parker, and Peter Thiel’s shares remain relatively the same, Saverin’s stake goes to under one percent. He is forced out of the company and decides to sue.

The Resolution

Much of the movie takes place in the deposition room as the two undergo this partnership dispute. In the end, they do settle for an undisclosed amount, and their friendship is ruined. The movie and story is just a reminder that these things can happen in business, especially in young startups in Silicon Valley. Speaking with a civil litigation lawyer in California is the first step if you find that you’re involved in a partnership dispute that you can’t solve on your own. Things happen in business, and stubbornness and ego can get in the way of progress. Litigation may be the only way to bring on a solution that is best for everyone. In Facebook’s case, both Saverin and Zuckerburg appear to be doing okay.

Patrick Whalen is a part of an elite team of writers who have contributed to hundreds of blogs and news sites. Follow him @2patwhalen.