Facebook Sued After Shareholders Lose Billions

Facebook is reportedly being sued by a shareholder who says that the company and its Chief Financial Officer David Wehner made inaccurate and incomplete statements about slowing revenue growth, falling operating margins, and declines in active users.

Shareholder James Kacouris, who says that said the 19% plunge in Facebook’s shares was caused by federal securities law violations by the defendants.

It is said that Kacouris’ lawsuit, which was filed in a Manhattan federal court, could just be one of many after the social media company had $120 billion of shareholder wealth wiped last week.

Source: Reuters