Winklevoss Twins' 'Settler's Remorse' in Facebook Dispute
The Winklevoss twins, Tyler and Cameron, have made headlines again due to their ongoing legal dispute with Facebook. Despite initially settling for $65 million, they later attempted to undo the deal, demonstrating a phenomenon known as 'settler's remorse'.
The twins' initial mediation with Facebook in 2008 resulted in a settlement of $20 million in cash and $45 million in Facebook stock. However, their dissatisfaction with the settlement led them to challenge the agreement, claiming Facebook had cheated them out of hundreds of millions of dollars. In 2011, they attempted to dismiss the case in a San Francisco federal court, but the specific judge who handled the case remains unidentified.
Experts suggest that focusing on sunk costs, or the time, money, and effort already invested, can hinder decision-making in negotiations. This was evident in the Winklevoss twins' persistence in pursuing further legal action despite the substantial settlement they had already received. Their case is often cited as a textbook example of not knowing when to walk away from a dispute. Fairness concerns can also overshadow objective outcomes in negotiations, contributing to destructive competition, as seen in the twins' persistent pursuit of what they believed was a fairer settlement.
The Winklevoss twins' case serves as a cautionary tale for negotiators, highlighting the importance of recognizing when it's time to accept an outcome as final. Despite a federal appeals court upholding the settlement, calling it 'quite favorable', the twins' initial plan to appeal to the U.S. Supreme Court demonstrates the challenges of knowing when to walk away from a dispute.
