Facebook CEO Mark Zuckerberg is facing a lawsuit from a local real estate developer for failing to introduce the latter to his wealthy friends and connections, who might be interested in buying home properties, a broken promise said to be part of a deal the two struck previously.
Various sources say the lawsuit was filed this month at the Santa Clara County Superior Court.
It all started with Zuckerberg's move to purchase a number of properties next to his home at Palo Alto, upon learning that a real estate developer, Mircea Voskerician, has plans to construct a big house in one of the residential lots behind the CEO's home. Zuckerberg paid over $43 million in different deals to buy four residences and lots bordering his own home in the posh neighborhood of Crescent Park late in 2012 and 2013.
Earlier Voskerician was eyeing at a Hamilton Avenue property where he intended to construct his big house. He agreed with the previous owner of said property that he would buy it, thereafter approaching Zuckerberg to sell a part of said lot so the latter could have barrier between his future house and Zuckerberg's house. What happened instead was Zuckerberg offered to purchase the legal right of Voskerician to the Hamilton property to allow Zuckerberg to buy the whole lot.
The developer initially didn't want to, but later agreed to give up said construction project. Zuckerberg paid Voskerician's stake on the lot for $1.7 million, then later purchased the lot from the original owner for $4.8 million, same amount Voskerician would supposedly pay for the lot, based on country records. It wasn't enough for Facebook's CEO as he again purchased three more nearby lots with prices from $10.5 million to $14.5 million each.
Voskerician, however, complains that the young CEO never lived up to his promise to help him through referrals to affluent personalities who might have an eye to purchase homes from him.
"Zuckerberg stated he did not want construction in his backyard for 14 months and told Voskerician that he would refer him business and make him introductions if, in exchange, Voskerician would help him secure his privacy," says the lawsuit.
Zuckerberg's lawyer called the complaint "meritless," and noted that his client paid $1.7 million to the real estate developer for the right to purchase a Hamilton Avenue property behind the home of Zuckerberg.
The lawsuit, however, states that the developer's interest in the Hamilton estate was worth more than Zuckerberg's payment of $1.7 million, saying another developer offered Voskerician $4.3 million to get the deal instead. Zuckerberg only got the deal with a discount when he, along with his financial advisers, promised to help Voskerician to acquire other estate deals.
"Here's this guy who built his business on connections and relationships, and all he had to do was make some introductions, but he blew my client off," says David Draper, who is Voskerician's lawyer. He admits the agreement on referrals was only made verbally, but argues that several people were in the meeting as witnesses.
Atty. Patrick Gunn defending Zuckerberg didn't categorically deny said discussion but dismissed the claim.
"The (lawsuit's) description of the meeting that took place is unrecognizable to my client. The claim here is just meritless, plain and simple," he says, in defense of the young Facebook CEO.
