Mark Zuckerberg Sued for Dumping Facebook Stock

News

By: / June 5, 2012

The guns are drawn and they are pointed at Mark Zuckerberg. So, what has this 28 year old CEO of Facebook facing so much heat?

Facebook shareholders filed a new class action lawsuit against him. Zuckerberg is accused of pulling a billion dollar fast one on Facebook investors. Allegedly, he had inside info that the stock was grossly overvalued and decided to quickly unload a ton of Facebook stock in hopes of protecting his own financial haven.

Can you even blame the shareholders for retaliating? You’d think he learned the first time since apparently this is the second time in two weeks a group of Facebook shareholders are accusing him of withholding information. Zuckerberg, along with a few of his minions attempted but failed at hiding the fact that there was not enough advertising revenue to support a stock valued at $38 dollars a share.

Apparently Morgan Stanley, JPMorgan, and Goldman Sachs did their job of making it aware that Facebook was seriously overvalued but that information was disclosed to the larger investors only. Sneaky, right? Large or small investor, every investor holding a share deserves to know what is going on. This is hard earned money you’re talking about here. Kind of makes you wonder what else might be going on behind the scenes of this obsessive social media.

One thing is for sure, money talks—and it’s calling out the greedy.