Facebook has told the court the federal judge in New York State that they have found the "smoking gun" proof which shows that the alleged investment contract, claimed by Paul Ceglia, was a fraud.
Furthermore the social networking company has argued that the contract Ceglia produced electronically is forged, accusing and that Ceglia is a known con artist, according to a Wired report.
In 2003, Ceglia had hired Facebook co-founder and CEO Mark Zuckerberg to work for his StreetFax company.
However seven years later in 2010, Ceglia claimed that a contract with Zuckerberg included $1,000 as initial funding for Facebook.
Ceglia filed a lawsuit claiming more than 50% stake in Facebook.
Zuckerburg says his work for Streetfax.com had nothing to do with Facebook.
Zuckerburg’s attorney told the court, "Embedded in the electronic data on Ceglia’s computer… Defendants have uncovered smoking-gun evidence that the purported contract at the heart of this case is a fabrication…," according to Bloomberg.
Earlier this year, twin brothers Tyler and Cameron Winklevoss decided against appealing to the Supreme Court over a ruling upholding their $65m settlement with Facebook and Zuckerberg.
The twin brothers had accused Zuckerberg of stealing their idea for Facebook.
They say that they had hired Zuckerberg to code their ConnectU site in 2003 after which he stole the idea and founded Facebook.
In 2008, Facebook agreed to a settlement with the brothers but did not admit to their claims that Zuckerberg had stolen their idea. In the deal, the brothers received $20m in cash and $45m worth of stock valued at $36 per share in the deal.
