Zuckerberg under fire as Facebook loses $123 billion in value

Zuckerberg under fire as Facebook loses $123 billion in value

Days after Facebook's stock suffered the largest drop in Wall Street history, a shareholder sued the company accusing the social media network of making misleading statements about its user numbers and operations.

The lawsuit seeks class-action status and unspecified damages.

During a routine call with analysts, Facebook's chief financial officer, David Wehner, startled brokerages by claiming the company faced a multi-year financial squeeze in the near future.

More news: Cairo zoo accused of painting donkeys like zebras

Siva Vaidhyanathan, a media studies professor at the University of Virginia and author of the new book, "Antisocial Media: How Facebook Disconnects Us and Undermines Democracy", dismissed the significance of the stock plunge. According to him, there is at least 19 percent plunge in the Menlo Park, California-based company's shares the next day.

Earlier this year, Facebook was embroiled in the Cambridge Analytica scandal, and took big steps to make the platform more personal and secure immediately after.

"It can notify a user when an unsolicited message was sent from a Messenger account that's not paired with an official Facebook one", The Verge reported. Many have been consolidated in the federal court in San Francisco.

More news: American Pastor Detained in Turkey to Move to House Arrest

Buffett now ranks third among the world's billionaires, while Zuckerberg is sixth. The earnings report released by the company stated that the management expects the revenue growth to slow down significantly in Q3 and Q4.

Investors filed at least two proposed securities fraud class actions against Facebook in NY federal court Friday, accusing the company and its top brass of misleading shareholders in the months leading up to its disappointing earnings statement and subsequent $120 billion stock drop.

Zuckerberg, on Wednesday, July 25, 2018 lost $16.8 billion in nearly two hours as the Facebook shares tumbled.

More news: House Republicans file articles of impeachment against Rod Rosenstein

"Nobody knows where the top is, where that growth slows down", said Phil Bak, CEO of Exponential ETFs and a former managing director of the New York Stock Exchange who said he's been warning investors of a potential sell-off in large tech stocks.

Related Articles