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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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Previous 15 Comments | 1 | 2 | 3 | 4 | 5 | 6
76.

denise    

of course he knows what his company is ACTUALLY worth...I for one am not surprised by his actions.

779 days ago
77.

denise    

of course he knows the true value of his company....If I owned a company i certainly would know the true value...I am not an economist or a wall st. biggie..but how about common sense!!

779 days ago
78.

The PR Verdict    

The PR Verdict: D (It's a Dud) for Facebook and its stockholders. The hits just keep on coming with this ailing stock, with bad press pushing prices ever downward. Zuckerberg's Pr problem is that there is little trust in his own personal brand.

779 days ago
79.

Dooas    

Like your opinion about Facebook. http://www.titlestyle.com

778 days ago
80.

Sautxyca    

Typically there is a "lock-up/blackout" period for company insiders before, during and after an IPO that extends for a few months. That Nasdaq "glitch" was no accident. It lined up and allowed a lot of cronies to get out at the top with the benefit of quiet info. Any suit upon "Zucky" is richly deserved. Such a botched IPO tarnishes the market.

778 days ago
81.

Eric    

Ha what a nerd

774 days ago
82.

dom    

he's got dollar signs all over his eyes; thank you Americans for your hard earned greenbacks!

721 days ago
83.

YUsoSTUPID    

I agree with the other PP's....One didn't have to be on the inside to know that this stock was waaaaayy over-valued. The people that bought into the hype are just plain stupid and shouldn't be playing the game in the first place. You have to do your due dilignece and research things. besides being over-values, you have to look at where they are/arent going. They rely on ad's, and they aren't even fetured on the mobile app, which a lot of people use. besides that GM announced the day before they went public that their ad's on FB were not effective, and were pulling the plug on the whole campaign. It would be a matter of time before others follow suit. Their other means of revenue are games such as Farmville, Darwsomething, etc. these aren't even Facebook proprietary or owened!!! Anybody who invested in this stock after the IPO deserve to lose money. Even the media reported, the morning before it went public, how car dealerships, real estate companies, etc were poised for the influx of sales since so many IPO shareholders would dump them as soon as it went public

713 days ago
Previous 15 Comments | 1 | 2 | 3 | 4 | 5 | 6

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