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Facebook Shareholders Sue Mark Zuckerberg for Insider Trading and Failure to Disclose Material Information

Investors who bought stock in Facebook are upset, leading them to do what upset investors do best: file a lawsuit against the person and/or company that allegedly wronged them. In this case, the person is CEO of Facebook Mark Zuckerberg and the company is Facebook (along with a few banks that helped with the Facebook IPO), and the wrongdoing alleged is insider trading, and failure to disclose relevant information (i.e., that Facebook was not worth as much as the IPO price suggested). Not long ago, Zuckerberg and his brainchild Facebook were widely admired and praised. He was the king of technology – a Harvard dropout turned billionaire – but uneasy lies the head that wears a crown. Now Zuckerberg, having officially been sued for insider trading in the U.S. District Court in Manhattan, has lost much of his esteem.