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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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46.

Joey    

You're not in College Mark You can't screw the big boys like you screwed the College guys

782 days ago
47.

Sid    

People, time to switch to Google+

782 days ago
48.

Kosher SAL    

Goldman Sachs, Morgan Stanley, JP Morgan, and a zuckerberg. what did you expect a kosher deal lol

782 days ago
49.

Sonya     

This law suit is bull**** and without merit, The game was botched from the start. They used a new system that never had been used before, the system was overloaded, order went unfilled, 30 minutes plus late on opening day, people never got proper information on the cost of there stock, where do I begin? I ask?

They reported GM pulling out earlier, they reported information just like every other company does prior to IPO day, there was nothing inside about it.

Congratulation Mark, on selling off shares to a company you built from scratch, you earned the right to sell first, if anybody tell you different, its hypocrisy

If the IPO had went perfectly like other companies before this (mess) we would be in a very different place right now, with everyone making loads of cash.

Don’t blame the messenger, blame the vehicle he had to take in order to make this happen. They are the core of this tragic situation.

Mark lost big as well, do you think he intended for that to happen? No way, who would be that stupid, he’s a genius and billionaire, the American people are sold!


Sonya Wiley

782 days ago
50.

peaches    

Sorry to say...but I never trusted this kid from the git-go.

782 days ago
51.

Pudding Tang    

when the whole world knows you're filthy rich be prepared to protect your [ass]ets

782 days ago
52.

Rafaelle Zuccaro    

Is there any difference between Mark and Berney Madoff? Why are these kind of people SO GREEDY??? They need 3 life times to spend their money and they BLEED every thing they can!!! Any way they can!!! Did they ever hear of honesty, decency,? have they NO MORAL CLARITY when "SHECKELS" are involved???Are they all taught by the same RABBI???

782 days ago
53.

Johnnyeyez    

I'm still trying to figure out how the hell FB is work one red cent...

782 days ago
54.

Pimpcessa    

I don't think I could ever trust this guy. Never seemed like a straight up individual. And probably suffered huge bullying when he was a kid, and now he's reaping his revenge. Something in his eyes, like.......nothing behind them.

782 days ago
55.

dynahog    

Available for reading from FORBES on 5/15/2012

GM Says Facebook Ads Don't Work, Pulls $10 Million Account

FACEBOOK went public on ???(drum roll) 5/18/2012

That's 3 days.

> As I understand it by the time FB went Public everyone should have known GM was their major source of earnings, it was no more.

> Caveat emptor as they say.

782 days ago
56.

Jeff Portlance    

Anyone who invested in this stock clearly had no idea what they were doing and deserve what they got. They clearly have no advertizing revenue. Go to the website. There are no ad's!!!! FB is a $.01 stock. A penny stock. Where is the company growth going to come from? If they start putting up ad's, the FB user base will go ASAP.

782 days ago
57.

EastCoastChopper    

Never trust a dude with the dead-fish handshake!

782 days ago
58.

Skillett    

Everyone who bought this stock has money. The sad part is that they went and bought this stock hoping to get richer, but when the tables turned they got pissed off and want to sue. The stock market is a gamble.

I'm going to sue Powerball because they sold me a lottery ticket that didn't win!

782 days ago
59.

Superman    

He's just a lowlife scammer! He should be in prison.

782 days ago
60.

nanci    

isnt this what that other celebrity cooking lady did? she went to jail for it.

782 days ago
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