Craig's Corner - Wealth Planning Insights

Tuesday, December 2, 2014

Litigation Involving Snapchat Founders Settled Out of Court

With the amount of new businesses, especially in the technology field, there are bound to be disputes.  The amount of money involved in these cases makes it no surprise that individuals who think that they are not receiving the appropriate credit make claims early and often.  Stories similar to the Facebook fiasco are common and the lawsuits brought as a result are serious business litigation matters.  A recent lawsuit involving the Snapchat app is evidence of the trend.

In 2013, a Stanford University graduate, Reggie Brown, brought a lawsuit against Snapchat founders Evan Spiegel and Bobby Murphy.  Brown claimed that he was behind the apps signature self-destructing photos and that Spiegel and Murphy failed to give him credit.  He also accused them of forcing him out of the fast-growing venture.  The three were fraternity brothers at Stanford and apparently started the company together.  

Evidence that the idea belonged to Brown did turn up.  Text messages from 2011 where Spiegel told Brown that he wanted to give him credit for the disappearing photos were brought into the case.  After months of litigation, the trio has finally decided to settle the case, although the terms remain undisclosed.  As part of the settlement Snapchat has issued a statement crediting Brown for his idea, his efforts in forming the company and its initial launch.  

Snapchat is thought to be worth about $10 billion and while it is unclear what type of monetary settlement Brown received, it is likely substantial, making the litigation worthwhile.  

Business law disputes are common but can be complicated nonetheless. Therefore, it is important to retain an experienced business law attorney to represent you in these matters.  If you are engaged in a dispute related to your business, or one in which you were involved in some way, Nevada attorney Craig Stone can help.  Contact the office by calling (877) 905-0890 for a consultation.

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S. Craig Stone II of Stone Law Offices, Ltd. serves clients throughout Clark County, Southern NV, Las Vegas, Henderson, Boulder City, North Las Vegas, Summerlin, Carson City, Reno, Washoe County, and Nye County. Also serving clients with asset protection nationwide.

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