This is an episode that Facebook would like to forget. It is on the verge of closing a legal battle. The terms of the settlement were, however, not disclosed, said a USA Today report.

Divya Narendra (in picture), along with two other former Harvard students, founders of ConnectU, brothers Cameron and Tyler Winklevoss, had sued Facebook, the fast-growing social networking site.

The trio alleged that the Facebook founder Mark Zuckerberg took a software code and a business plan from them in 2003.

Facebook had filed a countersuit, accusing ConnectU of unfair business practices.

A California federal judge had ordered the parties into mediation last year.

According to ConnectU founders, they had hired Zuckerberg, a sophomore at Harvard in 2003 to help create a campus-wide dating site called Harvard Connection.

He stalled the project for months and later started TheFacebook.com. The ConnectU founders alleged Zuckerberg of pilfering their profitable idea.

A Facebook spokeswoman said the company would not comment on legal matters.

But a close source said motions to dismiss the cases were expected to be filed 'within weeks.'

• Meet Divya Narendra, who took on Facebook