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Facebook sued after stock plunge; investors want Zuckerberg's grip loosened

Complaint accuses Facebook, Zuckerberg of making misleading statements, failing to disclose slowing revenue growth

Mark Zuckerberg
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Mark Zuckerberg

Jonathan Stempel, Gerrit De Vynck & Emily Chasan | Agencies New York
Facebook and its chief executive Mark Zuckerberg were sued in what could be the first of many lawsuits over a disappointing earnings announcement by the social media company that wiped out about $120 billion of shareholder wealth.

The complaint filed by shareholder James Kacouris in Manhattan federal court accused Facebook, Zuckerberg and Chief Financial Officer David Wehner of making misleading statements about or failing to disclose slowing revenue growth, falling operating margins, and declines in active users. Kacouris said the marketplace was “shocked” when “the truth” began to emerge on Wednesday from the Menlo Park, California-based company. He said the

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First Published: Jul 28 2018 | 10:20 PM IST

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