90689
Facebook Sued After Stock Plunge
Facebook Sued After Stock Plunge

Facebook Sued After Stock Plunge

Facebook Sued After Stock Plunge

Facebook Inc and its chief executive Mark Zuckerberg were sued on Friday in what could be the first of many lawsuits over a disappointing earnings announcement by the social media company that wiped out about $120 billion of shareholder wealth. The complaint filed by shareholder James Kacouris in Manhattan federal court 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, reported Reuters. Kacouris said the marketplace was “shocked” when “the truth” began to emerge on Wednesday from the Menlo Park, California-based company. He said the 19% plunge in Facebook shares the next day stemmed from federal securities law violations by the defendants. The lawsuit seeks class-action status and unspecified damages. A Facebook spokeswoman declined to comment. Shareholders often sue companies in the United States after unexpected stock price declines, especially if the loss of wealth is large. Facebook shares fell another 0.8% on Friday, closing at $174.89 on the Nasdaq.

 

Short URL : https://goo.gl/z2zJUy
  1. https://goo.gl/oKiV4b
  • https://goo.gl/sqf8Sf
  • https://goo.gl/u7CRDi
  • https://goo.gl/ZP5mHu
  • https://goo.gl/t56VQV

You can also read ...

Effects of Sanctions on Food Consumption of the Poor
It is now clear that the purpose of US sanctions against Iran...
CBI Moves to Sideline USD
As part of the latest measure to ditch the US dollar from the...
Surcharge on Forex Rate Difference “Illegal”
The retrospective application of Clause Five of the government...
New Online System to Monitor Warehouses Countrywide
All warehouses in Iran are required to register in the so-...
Bank Loans Hit €18 Billion in 4 Months
Banks and credit institutions allocated a total of 1.67...
Sanctions, Banking Troubles Facing Iranians in Hong Kong
Banking for companies that do business with Iran–as well as...
Sesame Oil, Products Imported From  6 Countries
More than 1.38 million tons of sesame oil and products worth $...
Gov’t to Build  2 New Towns
The Iranian government will commence the process of building...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus