Facebook Sued Following Stock Value Plummet

by Garry S.

2 years ago
Industry News

It has been a rocky week for both Facebook's chief executive, Mark Zuckerberg, and shareholders who got a heavy blow when the company's stock plummeted. The social media that still rules the realm has lost $120 billion in shareholder's earnings, which resulted in a lawsuit filed against Mr. Zuckerberg and his brainchild.

The lawsuit was filed on Friday, July 7, and it is expected to be one of many in the following months. Shareholder, James Kacouris, filed the lawsuit in Manhattan federal court, as he claimed that Chief Financial Officer David Wehner and Mark Zuckerberg were providing misleading information/failing to disclose the slowing down in revenue growth.

According to Kacouris, the revelation about the decrease in share value on Wednesday "shocked" the marketplace, and fear became a reality when news of a 19% decrease in share value hit the industry. Nasdaq closed on Friday with Facebook's stock standing at US$174.89, and the end remains to be seen with the opening of the stock market tomorrow.