Shareholder Sues Facebook After Stock Plunge (reuters.com)

Posted by BeauHD on Sunday July 29, 2018 @02:14AM from the all-about-the-money dept.

An anonymous reader quotes a report from Reuters: Facebook 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. 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 percent 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.

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I hope this gets laughed out of court... by Timothy2.0 · 2018-07-29 03:37 · Score: 4, Interesting

Buying any stock entails *risk*. You're not entitled to the value of that stock to go up. If you buy a stock and it plummets because of shitty corporate policy, *you* invested in a company with shitty corporate policy. Eat your mistake.