30.07 2018 09:02h

Facebook Sued Over Stock Plunge

Tough times for the social networking giant
Facebook, Social Media, Social Media News, Mark Zuckerberg

Mark Zuckerberg may be one of the richest men in the world – but he's had a rough few days.

Last week, Facebook shares plummeted due to a disappointing earnings announcement. The social network claimed that its sluggish growth was due to its new privacy policies.

Shareholders lost approximately $120 billion (or Dhs441 billion) over the course of a few days.

(Courtesy of NASDAQ:FB)

Some were, understandably, very frustrated with the situation.

As a result, one shareholder has filed a complaint against the social networking platform.

According to Reuters.com James Kacouris “. . . accused Facebook, Zuckerberg and Chief Financial Officer David Wehner of making misleading statements about or failing to disclose slowing revenue growth, falling operating margins, and declines in active users.”


Apparently, it isn’t unusual for investors to sue companies in the United States after unexpected stock drops. Interesting.

“Facebook said the slowdown will come in part from a new approach to privacy and security, but also appeared to acknowledge the limits of growth in advertising, which accounts for virtually all its revenue,” Arabian Business reports.

We'll keep you posted on any updates.

What are your thoughts? Let us know in the comments below.


Instagram Has Removed the “Following” Activity Tab
And many users are not happy about it
Teens Are Sick of Their Parents Posting About Them Online
Gen-Z clearly doesn't those embarrassing baby photos to be seen by anyone
The Most Awkward Interview The ITP Live Show Has Ever Done
We ambushed our guests at our latest event. This is what happened...
EMKWAN Shares A Special OnePlus 7T Unboxing
Introducing one of the sleekest new phones on the market