A federal appeals court* ruled Monday that former Harvard University schoolmates of Facebook founder Mark Zuckerberg can’t undo* their settlement* over creation* of the social networking site.

    The 9th U.S. Circuit Court of Appeals said Monday that Tyler and Cameron Winklevoss were smart enough to understand what they were agreeing to when they signed the agreement in 2008.

    The deal called for a US$20 million cash payment and a partial ownership of Facebook. A third classmate, Divya Narendra, was part of the settlement with the twins but did not pursue the second lawsuit seeking to undo the agreement.

    Monday’s ruling keeps a lower court decision enforcing* the settlement during the six years of litigation* that was dramatized in the film “The Social Network.”

    The settlement is now worth more than US$160 million because of Facebook’s increased valuation.

    The twins had said they were misled* about Facebook’s value when they agreed to settle their lawsuit that claimed Zuckerberg stole their idea to launch Facebook.

    The twins said they were misled into believing the company was worth US$35.90 a share because of an investment by Microsoft Corp. Facebook was later valued at US$8.88 for tax purposes. The twins argue they would have demanded more stock in the company based on the lower valuation.

    Facebook said Monday it was pleased by the ruling. Lawyers for the Winklevoss twins said they are reviewing the decision and have not decided on their next step. The twins could ask the Supreme Court to consider the case.(SD-Agencies)