Billionaire Zukerberg sued after facebook plunge 'shocked' market by wiping off US $ 120bil – Business News

NEW YORK: 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.

James Kacouris in Manhattan Federal Court Jailed Facebook, Zuckerberg, and Chief Financial Officer David Wehner of making misleading statements about or failing to disclose slowing revenue growth, and declines in active users.

Kacouris said the marketplace was "shocked" when "the truth" began to emerge on Wednesday from the Menlo Park, California-based company. The lawsuit seeks class action status and unspecified damages.

A Facebook spokesperson declined to comment.

Shareholders often sue companies in the United States after unexpected stock price declines, especially if the loss of wealth is wide.

scandal also concerning the UK firm Cambridge Analytica.

Thursday's plunge also hit Zuckerberg's bottom line.

Zuckerberg had been tied with Warren Buffett as the world's fourth-richest person, but the Berkshire Hathaway Inc. chairman's $ 83 billion fortune tops Zuckerberg 's $ 66 billion, Forbes magazine said.

Buffett now ranks third among the world' s billionaires, while Zuckerberg is sixth.

Facebook shares fell another 0.8 percent on Friday, closing at $ 174.89 on the Nasdaq. 19659002] The case is Kacouris v Facebook Inc. et al, US District Court, Southern District of New York, No. 18-06765. – Reuters