Facebook is sued after the stock market dropped

Sat, Jul 28, 2018 – 9:07 AM

[NEW YORK] Facebook and its Managing Director Mark Zuckerberg were prosecuted Friday in what could be the first of many lawsuits following a disappointing announcement by the media company The complaint filed by shareholder James Kacouris in the Manhattan Federal Court has accused Facebook, Zuckerberg and Chief Financial Officer David Wehner of misrepresenting or failing to disclose a slowdown in growth revenues, a decline in operating margins, "

M. Kacouris said the market was "shocked" when the "truth" began to emerge on Wednesday from California's Menlo Park. He said the 19 percent plunge in Facebook's stock the next day came from federal securities law violations by the defendants.

The prosecution seeks class action 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 significant. scandal concerning the British company Cambridge Analytica. Many were consolidated in the federal court in San Francisco.

Thursday's crash also hit Mr. Zuckerberg's bottom line.

million. Zuckerberg was tied with Warren Buffett as the fourth richest person in the world, but US President Berkshire Hathaway Forbes magazine said the fortune would reach $ 83 billion, according to Forbes magazine.

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

Facebook dropped 0.88% on the Nasdaq.

REUTERS