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Mark Zuckerberg Sued

Sold a Billion $$$

Before FB Disaster

6/4/2012 6:33 AM PDT BY TMZ STAFF
breaking news

0604_mark_zuckerberg
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.

124 COMMENTS

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16.

Flying Blind    

what is wrong with this website this time, won't load worth a crap. (high speed cable and a quad)

778 days ago
17.

Flying Blind    

that same picture will be on the 10 most wanted FBI list in a few weeks.

778 days ago
18.

Truth    

JOHN WALSH WILL BE TALKING ABOUT THIS IDIOT ON NEXT EPISODE OF AMERICA'S MOST WANTED. #AMW.COM #TRUTH!!

778 days ago
19.

Harvey    

The Pump & Dump continues.

778 days ago
20.

Beaners    

2nd WORST IPO in HISTORY!!! Said it before, and will say it again. What does FB offer? It's not a Technology or a service, it is a RESPOSITORY of information, BIG DEAL!!! The Business Plan is a Pipe Dream, a Wish and a lot of HOPE that people click on the links to it's advertisors. Should have NEVER gone public and should have remained a Private Company. The price will continue to drop!

778 days ago
21.

BB not bb    

This is probably a set up to keep Zuckerberg from getting to rich. The brokerage houses should be sued if they wre selectively letting customers know that the stock was overvalued. I said it didn't make any sense that he could make or lose so much money right away just by selling stock. The capital is still there and money is exchanged for the shares. It seems you would come out about even.

Watch they accuse him of insider trading like Martha Stewart and he ends up going to prison and losing all of his money for lying to investigators or something. Stocks are just shady in general. The only way to really make money in it is to be a crook and if you aren't they will come after you to keep the crooks at the top.

It is like selling partnership in a business to the highest bidder. That just doens't make any sense if you care about your business. The market is a way of manipulating commerce to make money.

I would rather support small businesses anyway. Facebook is something that many people use, but I only use it to view. Posting about yourself seems like a bad idea. It takes away your privacy, which is something that can't be replaced so easily.

I think someone probably talked Mark into every aspect of this business deal. He was a computer specialist, not a stock specialist. When Versace went public, he gained alot of headaches in people telling him what to do and how to design. He lost his freedom and control. He ended up retiring to end on a good note and the successors to him failed within months. I think stocks ruin companies more than anything and make the brokers rich. It seems like a racket.

778 days ago
22.

jr.d    

Send him to prison. He stole FaceBook, he steals our data, now he steals from investors. AND, he doesn't tip.

778 days ago
23.

@iAMTIMWILSON    

Did these 'Old Farts' not watch the Social Network? When sum1 shows you who they are, believe them!

778 days ago
24.

Irish2Ice    

COME ON!! "The lawsuit claims Morgan Stanley, JPMorgan, and Goldman Sachs -- all sounded the alarm before the IPO that Facebook was seriously overvalued" I call B***S***, they are the companies that set the damn price. They are just trying to throw Mark Z under the bus for their own greed! Mark didn't set the price, just capitalized on the stupidity and ignorance of others! Just like he's done before......but haters gonna hate. Is he supposed to apologize for being smarter than you?

778 days ago
25.

Truth    

PERFECT EXAMPLE OF A PUMP AND DUMP STOCK. PUMP UP THE HYPE AND DUMP THE SH*T, ER... I MEAN STOCK. #TRUTH!!

778 days ago
26.

Bubbles The Chimp    

Even the spammer above me who's aunt made $16823 the past month is down to zero. She bought FB shares with her new found riches.

778 days ago
27.

Jordan    

No one saw this comming he dumped the stock the same day the IPO opened.

778 days ago
28.

Jordan    

Who in ther right mind bought into facebook business model the only thing they sold was advertising and was there 100 billion in advertising on facebook not a chance.

778 days ago
29.

JM    

Did he perhaps get married so suddenly so that wifey can't testify against him?

778 days ago
30.

PT    

Sour grapes --- buyer beware.

778 days ago
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