Facebook Sued Over Stock Plunge
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.
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