Facebook investors are suing the social network, its CEO Mark Zuckerberg and CFO David Wehner after a poor earnings report wiped out nearly $160 billion of shareholder wealth.
The lawsuit, filed by shareholder James Kacouris in a Manhattan federal court, could be the first of many claims over a disappointing earnings announcement by the social media and social networking service corporation. Facebook is also dealing with dozens of suits over its handling of user data in connection with the UK firm Cambridge Analytica. Many of those lawsuits have been reportedly consolidated in the federal court in San Francisco.
Kacouris accuses Facebook and its two top-managers of making misleading statements or failing to disclose slowing revenue growth, falling operating margins and declines in active users. The lawsuit seeks class-action status and unspecified damages.
Not only failing to report on it, but actively dumping their own shares for a long while before because they knew it was coming.