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More Lawsuit Fun For Facebook (techcrunch.com)
1 point by transburgh on Aug 7, 2007 | hide | past | favorite | 3 comments



If anyone is wondering what's going on, it's standard for companies just about to go public to get a flurry of lawsuits from people hoping they'll pay them to go away.

Curiously, the ultimate culprit here may be the press. If a company is going public with a lawsuit hanging over its head, no matter how ridiculous, reporters will end otherwise positive stories with "but they're being sued" in order to seem to be judiciously reporting both sides of the story.


This happens to hedge funds, too. Clarium Capital and Citadel Investment Group have each grown about a thousandfold since founding -- and both have people claiming to be forgotten, cheated cofounders.


I wonder if Friendster'll pull out their patent, too, while the iron's hot.




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