Facebook and Mark Zuckerberg Sued Over Massive Share Drop

Facebook and Mark Zuckerberg Sued Over Massive Share Drop

Some of the biggest social media websites have taken a pretty big hit this last week. With both Facebook and Twitter reporting either drops or stagnation in user growth, both companies have been hit hard at the stock market. Most notably of the two, however, was Facebook. They saw a 24% plunge in the share price due to a significantly lower than expected user growth.

As you can imagine, shareholders are not happy. In a report via Reuters though, one is so displeased that he is actually taking legal action against both Facebook and it’s CEO Mark Zuckerberg.

Legal Action From Shareholder

The complaint, filed by shareholder James Kacouris suggests that Facebook, Mark Zuckerberg and financial officer David Wehner failed in their obligation to report on the poor growth the company was experiencing. As such, when the figures were finally released, it meant that the share price plunged far more than it might have done due to no anticipation or damage control.

The lawsuit is for a yet undisclosed amount which James Kacouris hopes to turn into a class-action suit. Breaking through the legalise, this means a lawsuit on behalf of many other people who may or may not be present. These can often represent massively significant amounts of money.

Does He Have A Case?

It’s hard to say. As you can imagine, neither Facebook nor Mark Zuckerberg has made any comment since the legal action was taken. To the best of my knowledge, they’ve barely said anything at all since the share price slumped. He may, therefore, have a case.  Only, however, if he can prove that Facebook or Mark Zuckerberg deliberately suppressed information that was available and relevant to shareholders.

We will wait and see!

What do you think? Were you surprised at the share price drop? Do you think he has a case? – Let us know in the comments!

Mike Sanders

Disqus Comments Loading...

Recent Posts

Ghost of Tsushima Beats God of War as PlayStation’s Biggest PC Release

Ghost of Tsushima was one of the most anticipated games of 2024 and has been…

2 hours ago

Huge Assassins Creed Bundle Has Huge Savings

What might be one of the best Steam deals I've ever seen has just been…

2 hours ago

Take-Two CEO “Highly Confident” in Fall 2025 Release for GTA 6

Take-Two Interactive, the publisher behind the highly anticipated GTA 6, has announced a release window…

2 hours ago

MultiVersus Launch Trailer Unveils New Characters

Warner Bros. Games has just released the launch trailer for MultiVersus, revealing exciting new characters.…

2 hours ago

Larian Studios Opens New Office in Warsaw

Larian Studios, the developer of the highly acclaimed game Baldur's Gate 3, has opened a…

2 hours ago

Tesla Removes Steam Support from New Cars

Tesla has decided to stop supporting Steam gaming in its latest Model S and Model…

2 hours ago