Facebook sued
https://www.reuters.com/article/us-facebook-lawsuit/facebook-is-sued-after-stock-plunge-idUSKBN1KH2JY How ridiculous is this? The stock market is risky by nature...
U.S.
And if he disclosed it he would have gotten sued if there was an uptic. If we banned lawyers for one year this country would be better.
Except they have been warning of slower growth for many quarters during their conference calls. Not sure what more they can do. They've certainly tried to make people aware they can't grow 40% a year forever.
It’s not ridiculous at all, it’s the way the American system works. It’s also part of the reason why Uber and Airbnb have avoided going public for so long. Public companies get sued *all the time.* Also if you read Matt Levine you’ll know that literally everything a public company does is potentially securities fraud.
“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.” They’ve been saying to expect slower growth and that they were going to invest more for the long term for at least 3 quarters, yet the stock grew almost 30% in a year, or ~43% (!!) since the lowest point after the news about cambriedge analytica just 4 months ago. Are you really telling me this was unrealistic??
Sorry but filing a suit based on an accusation of either misleading or failing to disclose, sounds more like a "catch all" complaint. Did they mislead or did they not disclose?
They very much disclosed in every one of the last 3 (at least) quarterly reports. This last one was a bit more emphatical, probably due to the fact that the stock kept going up out of control despite the warnings. And this is besides the fact that you shouldn’t have to tell professional investors that it’s unsustainable for a company to grow the way it was growing indefinitely.
This is nothing more than one of these useless class action law firms hoping to get a quick settlement out of Facebook
If you read the article, you would get that the folks filing the suit are doing so coz they claim the Zuck didn't indicate slowing rev growth earlier.