Mark Zuckerberg Sued Over ‘Overvalued’ Facebook Stock

A new lawsuit claims Mark Zuckerberg pulled a billion dollar fast one on Facebook investors.

The class action lawsuit — filed by disgruntled Facebook shareholders — claims 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 the mogul 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. Then again, hasn’t Mark suffered enough.  He’s only worth around $15 billion, isn’t he?

Do you think the Facebook stock could still recover from this mess? Feel free to share your thoughts and ideas in the comment box below!

Source: TMZ

Image: Code Name Tech

World Stocks Fall Due To Growth Fears

Stocks have fallen on fears over the health of the global economy, after last week’s weak US jobs data and persistent fears over the eurozone.

Figures released on Friday by the US Labor Department showed the smallest growth in employment in five months. The US economy added 120,000 jobs during March, less than the 200,000 widely predicted by analysts. Investors in Europe were given their first chance after the Easter break to react to Friday’s disappointing US jobs data. The figures raised fears about the strength of the recovery in the US economy.

Meanwhile, the interest rate on Spanish bonds traded in the secondary market continued to rise. The yield on 10-year bonds hit 5.99%, up from 5.74% on Monday, indicating that investors are getting increasingly concerned about Spain’s ability to repay its debts.


Investors in Europe also had an eye on Chinese data showing a rise in exports but a sharp fall in imports, while a report from the Organisation for Economic Co-operation and Development (OECD) also gave mixed messages. It identified a “potential turning point in economic activity in the euro area and regained momentum in other major economies”, particularly the US and Japan.

But the report also talked of “diverging” economies in Europe, with Germany and the UK showing a “positive change in momentum” but France and Italy displaying “continued sluggish activity”. Analysts noted general caution ahead of the first quarter reporting season in the US, beginning later on Tuesday with aluminium giant Alcoa.

Source: BBC News

Image: Asia Bizz