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Facebook and CEO Mark Zuckerberg were sued Friday in what could be the first of many litigation reports on the company's disappointing results, which wiped out nearly $ 120 billion of its market capitalization.
The appeal filed by the shareholder James Kacouris in a federal court in Manhattan accuses Facebook, Zuckerberg and the financial director David Wehner of to make misleading statements or not to report the slowdown in revenue growth, ] lower operating margins and decrease in active users.
Kacouris said the market was "shocked" when the "truth" about the company in Menlo Park, California began to be known. He claimed that the 19% collapse of Facebook's shares the next day was due to violations of the federal securities law by the defendants.
The measure is intended to become a class action and requires non-detailed compensation. A Facebook spokesperson declined to comment.
Shareholders generally pursue companies in the United States after unexpected stock price declines, especially if the impairment loss is significant.
Facebook has faced a dozen lawsuits because of data manipulation from its users amidst a scandal involving British firm Cambridge Analytica. Many have been consolidated in a federal court in San Francisco.
The collapse of Thursday also affected Zuckerberg, who ranked fourth in the ranking of the world's richest people with Warren Buffett. But the current wealth of Berkshire Hathaway Inc.'s president reaches 83,000 million dollars and that of Facebook's head reaches 66,000 million, Forbes said.
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