Zuckerberg sued for insider trading

[ShareShiz]

Zuckerberg sued for insider trading

Facebook founder Mark Zuckerberg is facing a class action suit from disgruntled Facebook investors who claim that he dumped $1 billion of stock on insider knowledge that it was grossly overvalued.

If you had a big stake in the Facebook IPO, you've got plenty of reasons to be a little upset about how things have been going since then. A new class action lawsuit takes things a step further by suing Mark Zuckerberg, claiming that the Facebook founder used insider knowledge to unload on $1 billion worth of massively overvalued stock.

The lawsuit says that Zuckerberg and Facebook's management knew that the site couldn't draw in enough advertising revenues to support the stock's $38 IPO share price, and that Morgan Stanley, JPMorgan, and Goldman Sachs all warned them about it.

Rather than doing the upstanding thing and taking action, Zuckerberg decided to dump a large portion of shares while the prices were still good. Only a select few 'major' investors were actually informed about the overvaluation.

Still, it could be worse - Zuckerberg hasn't faced any criminal charges so far, so he doesn't have to worry about any of the stiff penalties involved with insider trading. Yet.

ShareShiz Reviewed by ShareShiz on 5th Jun 2012. Zuckerberg sued for insider trading Zuckerberg sued for insider trading Facebook founder Mark Zuckerberg is facing a class action suit from disgruntled Facebook investors who claim that he dumped $1 billion of stock on insider knowledge that it was grossly overvalued. Rating: 5

[JGM]

JGM.

[tooshy]

Insider trading is a federal offence. If you're caught doing it, a class action lawsuite is the least of your problems.

http://usnews.msnbc.msn.com/_news/2012/06/05/12061538-lawyer-sentenced-to-record-12-years-for-37-million-insider-trading-scheme?lite

[BlaZe]

His wife proved unlucky for him although I don't believe in such stuffs but it might be true ?

*takes popcorn & sits back relaxed*

[shiver]

[JGM]

Please let this be the end of Facebook please please please please!

JGM.

[Apathetic]

^No way.

[Gh0st]

Please let this be the end of Facebook please please please please!

JGM.

No reason for it to close if you don't like it.

[UKInternetGroup]

Greed.

[rko]

rich guy getting sued, omg