Furious Facebook.Com investors have filed a lawsuit against founder Mark Zuckerberg, alleging he knew the business had been overvalued ahead of its flotation last month (May12).
Zuckerberg floated his social networking site on the U.S. stock market for $100 billion (£63 billion) but shares soon dropped in price, prompting complaints from many investors.
Critics allege the CEO knew the stock was overpriced and protected his own finances by selling off the organisation, according to TMZ.com.
Editors at the website report a lawsuit has now been filed against Zuckerberg, in which it’s alleged the site did not generate enough revenue from advertising to warrant selling shares at $38 (£25), and that this information was passed on by Morgan Stanley, JPMorgan, and Goldman Sachs prior to the flotation.
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