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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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1.

FlamingoNut    

Insider info that it was grossly overpriced? If that was a news flash to anyone, I have a bridge to sell you...

810 days ago
2.

EMB    

If you didn't know FB was over valued from the get go, you are a moron.

810 days ago
3.

HollyH    

HHMMMMM...Sounds familar. But will he do time, like Martha Stewart?

810 days ago
4.

Phreaky    

Pfft - I saw offshoot news websites saying it was overpriced before the IPO - if anyone thought otherwise, they had their head in the sand.

810 days ago
5.

Jack    

Anyone who bought the stock got what they deserve because it was obvious that it was overvalued. FB gets what it deserves by letting a kid run the company. Yea, he founded it but doesn't have any experience running a company that size.

810 days ago
6.

ragu4u    

Not EVERY snake looks like Bernie Madoff.

810 days ago
7.

cancelledaccount    

And he didn't leave any tips while honeymooning in Italy. Greedy little boy.

810 days ago
8.

SuperSonic    

Facebook bought Instagram for $1 billion in cash and Facebook stocks. Hmmmmm...

810 days ago
9.

CriticXtreme    

Smart move for this guy. He knew this event was a train wreck, yet many of you morons still jumped aboard without properly checking everything out. If this IPO was done in the early days after a high rating, it would have been different and if those who set this up hadn't raped the financial world, it would have worked.

810 days ago
10.

Twilight Sparkle    

Facebook was DEFINITELY over valued. Is he that stupid that he needed "insider info?"

Get a new person running the company please.

810 days ago
11.

janet    

Facebook can tank tomorrow and Mark will still have more money than he could ever spend.

810 days ago
12.

Bubbles The Chimp    

Insider Trading will be this guys downfall.

810 days ago
13.

Fat Mike    

Why is anyone surprised? The guy is a well-known thief. No-one pays out $65 Million to get out of a lawsuit after doing nothing wrong. He's like a modern day Michael Jackson.

810 days ago
14.

Flying Blind    

He better stay in Italy and denounce his citizenship with that other guy.

810 days ago
15.

Truth    

I BELIEVE IT 1000%!!! DUDE F*CKED AROUND PEEPS WHO REALLY DISCOVERED FUNDAMENTAL MODEL OF FACEBOOK AND THE LAWSUITS THAT OCCURRED AFTER THAT. HE SETTLED HUNDREDS OF MILLIONS TO KEEP HIS A$$ SAFE AS CEO. BESIDES, DONT IDIOTS RECALL INTERNET CRASH FIRST TIME AROUND?? YIPPERS, PEEPS HAVE SHORT MEMORIES. #TRUTH!!

810 days ago
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