Shareholder Sues Facebook After Stock Plunges

Shareholder Sues Facebook After Stock Plunges

Days after Facebook’s stock suffered the largest drop in Wall Street history, a shareholder sued the company, accusing the social media network of making misleading statements about its user numbers and operations. The plaintiff, James Kacouris, filed the lawsuit Friday seeking class-action status and to recover damages. Kacouris alleged that Facebook and its chief executive, Mark Zuckerberg, violated federal securities laws by misleading shareholders about the company’s number of active users and the slowing growth of its revenue. Kacouris also named Facebook chief financial officer David Wehner in the lawsuit, filed in U.S. District Court for the Southern District of New York.

 

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