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POPSFacebook 'paid out $65m' over stolen idea claims Mr Zuckerberg, a second year student at the time, took their code and their idea and launched Facebook in February of 2004 instead of holding up his end of the deal, according to ConnectU's lawsuit. Facebook and ConnectU founders, in the company of lawyers and advisers, negotiated a settlement that includes Facebook buying ConnectU for an undisclosed amount of cash and stock, according to court documents. A condition of the deal is that all parties keep details confidential or pay a multi-million-dollar penalty. The lawsuit was seen as a threat to the existence of Palo Alto, California-based Facebook.