In Strange Ownership Suit, Judge Removes Restrictions on Facebook Assets

Facebook won a victory in the latest of its string of ownership-related lawsuits on Friday, when a New York federal court judge struck down a restraining order preventing the company from transferring its assets.

We wrote about New York resident Paul Ceglia last week who is suing Facebook and founder Mark Zuckerberg. Ceglia claims to have signed a contract with Zuckerberg in 2003 for a web site that resembles what is now Facebook and claims to be owed 84% of the company. The case itself is odd for a number of other reasons, like the timeline not fitting into the state’s statute of limitations (why wasn’t the issue brought up earlier?), and the plaintiff being previously charged with grand larceny for not providing customers with $200,000-worth of pre-ordered wood pellets in 2009.

The restraining order restricted Facebook from moving its assets. Facebook had the case moved to federal court and, although it continues, U.S. District Court Judge Richard Arcara in Buffalo said that the order was “impermissibly vague and overbroad.”