TMZ

Our TV Shows

Got a Tip?

Call TMZ at (888) 847-9869 or Click Here

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

No Avatar
61.

nanci    

these big investment companies thought it would be a big payday for them and didnt wait to find out, in the end all their money went on a failing spree.

807 days ago
62.

AgentBlonde    

Someone out there is trying to teach this "kid" a lesson, I think.

807 days ago
63.

Dino     

He transfered the money to China , of course !

807 days ago
64.

guitartown    

of course, he dumped his stock. he's made his ridiculous amount of money, he doesn't care about the little people who he drug along with him in the first days of this social media mess. God bless him, and all of the other robber barons in this country today. They will be the first ones in the used doublewides when it all really does fall apart.

807 days ago
65.

Bstone    

darwin

807 days ago
66.

mamasan    

Live and learn. There is a sucker born every minute. He is laughing all the way to the bank.

807 days ago
67.

cass    

This **** sucker stole the facebook idea from the twin brothers, now he pulls a billion dollar fast one.


WHY do you people trust in this ****head?

807 days ago
68.

john johnson    

lol,lol hey mr. martha steward, guess ur now a garbage man, cause you dumping stocks. what a fraud! threw the newark board of ed 400 mil just to write it off. just like every one else, a sleaze bag.

807 days ago
69.

cyringe    

Sue him? FOR WHAT?
If it was worth $80 bucks the next day, will they still sue him for making too much profit.
Bayer beware!!! He was selling and they bought, i thought that is BUSINESS 101.
Greedy fools and the smart kid.

807 days ago
70.

brian    

It should be common sense to NOT invest in a social networking company, but it was still a dick move, Zuck.

807 days ago
71.

Eduardo Saverin    

Why weren't his years restricted? Eh, he should have just left the country and sold off.

807 days ago
72.

Tee    

I thought it would open at around $7 or $8. I was shocked that it was valued that high!

807 days ago
73.

Toulinwoek    

I find it 'interesting' how EVERYONE somehow 'knew' the stock was overpriced. Not that I'm accusing anyone of lying, it's just...interesting.

That said, just because (or even if) 'everyone' did somehow 'know' the stock was overpriced, the thoughts and opinions of the masses do not constitute inside information. According to the suit, Zuckerberg allegedly had prior knowledge of the overpricing from an actual, official source.

Avoiding stock just because 'everyone' and their brother has some prescient knowledge that it's a bad buy is one thing; dumping stock because the likes of Morgan Stanley/Goldman Sachs, etc. say it's overpriced is an entirely different thing, especially if one selectively hides that information.

Of course, the only fair thing to do is to take all but about $63,000 of his money. Fat chance of that.

807 days ago
74.

Cy-Kill    

Well, there's info missing from your article, what law firm is handling the lawsuit?

807 days ago
75.

Victor V    

FB was VAPORWARE and I predicted that almost 5 weeks ago.

806 days ago
Previous 15 Comments | 1 | 2 | 3 | 4 | 5 | 6 | Most Recent | Next 15 Comments

Around The Web