Mark Zuckerberg Sued: Accused Of Withholding Information
The class action lawsuit, filed by disgruntled Facebook shareholders, states the 28-year-old CEO had inside info that the stock was grossly overvalued and he protected his own financial hide by quickly unloading a ton of Facebook stock.
This is the second time in two weeks a group of FB shareholders have joined together to accuse Zuckerberg of withholding information.
The lawsuit claims Zuckerberg and his cronies hid the fact that there was a foundational flaw in the Facebook business model - that there was not nearly enough advertising revenue to support a stock valued at $38 a share.
The lawsuit claims Morgan Stanley, JPMorgan, and Goldman Sachs - all sounded the alarm before the IPO that Facebook was seriously overvalued, but that information was "selectively disclosed" to the largest investors.
The lawsuit claims Morgan Stanley, JPMorgan, and Goldman Sachs - all sounded the alarm before the IPO that Facebook was seriously overvalued, but that information was "selectively disclosed" to the largest investors.
Then again, hasn't Mark suffered enough. He's only worth around $15 billion.
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