Facebook Facing Legal Issue After Stock Plunge

Zuckerberg & Facebook slapped with lawsuit for failing to warn investors of slowing growth

Facebook chief executive Mark Zuckerberg's fortune took a more than $15 billion (£11.44 billion) hit on Thursday, as the social media company suffered the biggest one-day wipeout in United States stock market history a day after executives forecast years of lower profit margins. These moves have likely impacted Facebook's earning projections and user numbers, which led to the 24 percent reduction in its stock value.

Mr Kacouris said the marketplace was "shocked" when "the truth" began to emerge on Wednesday from the Menlo Park, California-based company. He said that it stemmed from various federal securities law violations by the company.

But not to forget that his annual salary is $1 and also not to forget ever that he is among the top 20 billionaires with a net worth of $71 billion according to Forbes but just recently he lost $15.4 billion in one day. He accused Facebook - particularly Chief Executive Officer Mark Zuckerberg and Chief Financial Officer David Wehner - of nurturing misleading statements and failing to disclose its slowing revenue growth.

The plaintiff, James Kacouris, filed the lawsuit Friday seeking class action status and to recover damages. Questions of data privacy, fake news proliferation and user growth have dogged the company. Many have been consolidated in the federal court in San Francisco.

Stars react to the Toronto Danforth shooting
The name of the young girl, who was from the Greater Toronto area, has not been released per the wishes of her family. The Special Investigations Unit, an independent body looking into his demise, would not confirm a cause of death.

Thursday's plunge also hit Mr Zuckerberg's bottom line.

These quotes and average results from its second quarter caused Facebook's stocks to drop a whopping 19 per cent overnight.

The S&P 500 technology index fell 2.0 per cent, the most among the major S&P sectors. Scott Kessler, a representative from CFRA Research commented on the issue: "Legal/regulatory developments have led to changes meant to support FB's platform and users, but they will notably restrain growth and profits for at least the next couple of quarters, in our opinion".

For more than a year already, Facebook and other social media companies have been under fire courtesy of policy makers and regulators.

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